A significant uptick was seen in the Turkish ferrous scrap market on Thursday, as Baltic and European cargoes showed that increased demand had caused enough pressure for pries to approach $190/mt.
On Monday, $189/mt for heavy melting scrap I/II 80:20 was seen from a Baltic merchant, while a European trade at $179.50/mt for 75:25 said to be a couple of days old showed the hike had started earlier in the week.
"The [Baltic] price was so high because it had so much HMS, the tightest grade out there," a trader said, referring to talk this week that supplies of 80:20 material were tight due to lackluster domestic collections and sudden demand from India.
Indian buyers were heard to book eight or nine cargoes this week, which could continue to shove Turkish pricing up to $195/mt, the trader said.
Consensus from many sources was that the increase still had some growth room, and a further $5 or $6 increase could be in the cards, capping out repeatable value at $195/mt for US material.
A lack of support from other markets continued to cast doubt over the longevity of the rally. A Turkish agent for European scrap merchants said it was a question of how long such pricing could be sustainable under pricing from the Turkish longs market.
Rebar offer prices were seen to increase this week alongside scrap and supported by a small UAE sale, but export prospects remained dim.
Platts assessed HMS I/II 80:20 CFR Turkey at $187.50/mt on Thursday, up $7.50/mt from Wednesday.
