Turkish deep-sea scrap prices have seen a rise in prices over the last week due to increased demand for steel from mills following improvements in supply and restocking efforts by manufacturers across North America. The price of US sourced HMS 80:20 has also risen from $363 to $363 per tonne delivered (CFR) while prices at East Coast ports have increased from $332 to $332 per tonne free on board (FOB). In addition, shipping costs and collection expenses are continuing to be high for US and European scrap metal producers.

With strong finished steel sales within the Turkish domestic market and all Turkish mills having a backlog of orders until at least January, there appears to be continued price support. Winter restocking will continue to drive demand. Additionally, tight shortsea supply and rising domestic rebar prices will continue to exert upward pressure on prices.

Outlook:

Going forward, it is believed that mills' rebar inventories will determine their scrap procurement strategies, providing continued support for the deep-sea market over the next few months.