Turkish steelmakers have increased their imported scrap demand this week, as expected. Imported scrap prices have consequently started to rise.

Turkish mills have concluded numerous US-origin scrap cargoes since last week. US-origin HMS 1&2 80:20 prices, which decreased to $253/tonne cfr Turkey last week, have started increasing following the sharp hike in iron prices, bullish sentiment in China, and increasing scrap prices in Asia. In the latest bookings, US-origin HMS 80:20 prices rose up to $258/t cfr.

On Tuesday, one US-origin supplier was asking for $259/t cfr for HMS 80:20, while others’ offers are at above $260/t cfr. No Baltic-origin bookings have been heard so far. Baltic-suppliers are offering HMS 80:20 at $263-265/t cfr.

After selling HMS 80:20 at $249/t cfr last week, European suppliers have also increased their offer prices this week. However, further euro strengthening against the dollar and the increase in European dock prices make it difficult to conclude sales to Turkey.

Turkish mills’ short-sea scrap demand seems lower compared to deep-sea. Short-sea scrap suppliers, except for Russia, are offering HMS 80:20 at $250/t cfr, while Russian merchants are offering HMS 90:10 at $265-270/t cfr.

Turkish mills have also increased their rebar quotes from $405-410/t fob Turkey actual weight last week to $415-425/t fob this week, following the increase seen in scrap prices. Although prices at $425/t do not seem acceptable in the global market today, Turkish mills seem more confident about their offers thanks to support from the domestic market and recent high-volume Asia sales.

A Turkish producer tells Kallanish: “Scrap has risen by $5/t at most; we have increased our rebar and hot rolled coil prices by $15/t. This is only the reflection of the domestic market. There is not sufficient demand in the global market to support these prices.”

Kallanish expects to hear more scrap bookings this week as there are many mills that are continuing negotiations with scrap suppliers for August-shipment cargoes.