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Scrap prices in Turkey are seen continuing last week¡¯s rise on fresh bookings this week.

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Following the EU-origin HMS 1&2 80:20 scrap booking at $377/tonne cfr Turkey last week, more deep-sea bookings were concluded on Monday.

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A Marmara mill is heard to have bought Finland-origin HMS 1&2 80.20 at $390/t and bonus grade at $405/t cfr, while a western mill is heard to have booked Venezuela-origin HMS 1&2 80:20 at the same price. A US-origin booking was meanwhile confirmed done at $394/t cfr for HMS 80:20, and $414/t each for shredded and bonus.

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Suppliers are now seen targeting to sell at higher prices. While US suppliers have already increased their price ideas to above $400/t cfr Turkey, European suppliers are eyeing $390/t and higher. Even short-sea offers are seen standing at around $380/t cfr.

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Dock prices in the Benelux have also increased sharply, meanwhile, following these fresh bookings at higher prices in Turkey. Exporters, who were bidding at €300-305/t on Monday, were offering at €315-320/t ($322-327) delivered on Tuesday.

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Although prices in Turkey are rising, this is not the case in the rest of the world and market players are questioning whether fundamentals are solid enough to support these rises.

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A Turkish mill source tellsKallanish: ¡°I think it is the same cycle. Suppliers, knowing that Turkey has not bought September-shipment cargoes, have backed off and increased their prices. These prices will probably fall after Turkey fulfils its requirements.¡±

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A supplier, however, says: ¡°There is a real supply problem. As it is not expected to ease in the near term, we will likely see higher scrap prices.¡±

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Another mill source says that sufficient support from finished steel sales is missing and this will pressure scrap as well as steel prices. ¡°HRC prices have fallen below rebar and demand for both is weak. Higher scrap prices are risking Turkey¡¯s margins. This is not sustainable,¡± the source warns.

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Amid rising imported scrap prices, Turkish mills are meanwhile increasing their domestic and shipbreaking scrap purchasing values.

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Despite some rebar sales concluding to the US, the EU and some other major markets, Turkey¡¯s export sales remain small scale. On the other hand, demand in the domestic market was still lacking on Tuesday, with prices at $642-670/t ex-works. The sharp fluctuation in exchange rates on Tuesday caused domestic buyers to remain hesitant.

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