Turkish ferrous scrap found support at around $180/mt on Friday as the week closed showing that higher prices were still possible.
Platts assessed HMS I/II 80:20 CFR Turkey at $180/mt on Friday, up $0.50 from Thursday.
A Baltic seller sold a cargo to an EAF-based producer containing 21,000 mt of heavy melting scrap I/II 80:20 and 9,000 mt of bonus for an average price of $183/mt for February shipment. This normalized to $180/mt for the 80:20 portion of the cargo.
Sources were in agreement on market level for Friday, placing $180/mt as a solid benchmark for deep sea material headed into Turkey. Current buying habits would make typical purchases on a prompt basis.
Purchasing methods have shifted. Buying patterns in the last year have caused Turkish mills to pile in after a key drop in prices, typically causing correction in the market as 10-15 cargoes are booked over a course of two to three days. This week has seen minimal cargoes and plenty of confusion on pricing.
This week, several cargoes have arrived at the $180/mt independent of each other, setting a clear stage. buy- and sell-side sources are in agreement that mills are low on material, but seller presence continues to outstrip apparent demand.
Sources say mills have been heard to be pushing lower in the range of $175-$178/mt, leading some sellers to retreat from the market as they evaluate the new situation.
Agreement centered on a stable market Friday, but predictions for the future remained bearish. One trader said he believed that prices would continue south to $170/mt.
A Baltic merchant argued that the intrinsic value of scrap had not fallen considerably, with much of the week's drop visible in declining freight rates.
Other speculation has concerned currency exchange rates, with a falling ruble inspiring cheaper export billet prices from Russia.
