Low supply pushes Turkish ferrous scrap higher

 A shearing of supply in the ferrous scrap market caused the price of material imported into Turkey to rise further December, as sources dismissed winter weather as a factor with harsher conditions not expected until January across Europe, the US and even the Baltic region.

Platts assessed HMS I/II 80:20 at $322.50/mt December 17, up $5.50 from December 16.

"Stock is not being withheld, there are too many suppliers and not enough tons," a European supplier said.

The supplier also attributed the shortage to the weakening of several currencies against the US dollar.

"Scrap is a harvest, not a product. You can't perform a harvest on a weak currency," he said.

A premium US supplier sold a cargo to an electric arc furnace-based producer containing 16,000 mt of 85:15, 5,000 mt of shredded and 19,000 mt of bonus material at an average cost of $330/mt.

Given a difference in price between 85:15 and 80:20 material of plus $1/mt, the 80:20 price normalized to $324.25/mt.

The cargo is for shipment in January, arrival February and was confirmed with a source close to the transaction.

A second cargo was heard from a Baltic supplier on a prompt basis to another EAF-based producer.

The cargo was of unspecified size, containing HMS I/II 80:20 material at $321.25/mt and bonus at $331.25/mt.

A large portion of recent cargoes has been booked on a prompt basis, showing appetite for quick delivery is a strong factor in the current market.

A Turkish producer said there was no reason to pay current pricing, as he believed material is still heading into ports in the US and more suppliers will be back on-stream in a few weeks.

Sales in the finished product export market have been weak, with some mills overstocked on rebar and billet.

Asking prices for rebar have risen alongside the increase in scrap, but no purchasing has occurred at these higher levels.

Courtesy : Platts