The Turkish ferrous scrap import market was caught somewhat off-guard Friday by a stronger trade out of the US East Coast.
A large merchant sold to an Iskenderun-based electric arc furnace steelmaker late Thursday 18,000 mt of HMS I/II (80:20) at $370/mt CFR, 4,000 mt of shredded at $375/mt CFR and 18,000 mt of P&S at $380/mt CFR.
The shipment was for early-February loading and was confirmed by both counterparties.
While some expressed surprise at the high deal price, most sources surveyed on the day deemed it repeatable and representative.
A Turkey-based agent representing Baltic sellers said he would push for $380/mt CFR on the back of this trade, although buyers thought this would not be achievable.
"Sellers would ask for higher prices but I don't give much chance that Turkish mills will be a in a hurry to accept," one Iskenderun-based EAF steelmaker said.
Another agent, who has recently sold 80:20 at $359/mt CFR equivalent, said he would sell below $370/mt CFR, but did not elaborate when asked if he had material to offer.
The market has been supported by strong steel prices, tightening scrap availability and a broad-based strengthening of demand from key import markets.
Rising coal prices have also played into a stronger market, with blast furnace-based mills looking to reduce coke consumption and ramp up their scrap charge.
S&P Global Platts daily assessment of Turkish HMS I/II (80:20) imports moved up $9/mt to $370/mt CFR Friday on the back of this stronger trade and higher indications.
