ANKARA: Turkish HMS 1/2 80:20 scrap import weekly average prices (CFR Iskenderun Port, Turkey) increased further by $27 a ton week-on-week at $272 a ton during the week ended February 17, as per the latest figures from the Steel Index. Rapidly improving demand for semi-finished products has spurred scrap demand from the mills. Prices for Turkish rebar have moved up in line with the scrap prices, helping to preserve margins for the mills.
Scrap closed the week at $282 a ton, up $32 a ton from last Friday. Rebar prices rose $20 a ton on the week to close at $405 a ton. Demand for semi-finished products, both in Europe and notably from the Asian markets, has also increased, further supporting prices. Despite the recent price rises for Turkish rebar, it remains $10-15 a ton lower than Chinese rebar, giving exports a good arbitrage opportunity. The ferrous complex as a whole has seen a very bullish period recently, with iron ore hitting a 30 month high of $91 a ton Monday, while finished steel products are seeing similar strength.
Northern European HRC hit its highest value since June 20, 2011, at €571 a ton, Tuesday. European scrap merchants have expressed concern that supply may be tightening, with exporters struggling to get material from scrap yards, and rumors of material being withheld in order to take advantage of any further price rises. Exporters from the US East Coast seem to be more than happy to keep selling into Turkey, although if prices in the US push up again in March, USEC exporters may look to sell inland, rather than export to Turkey.
