US scrap sale confirmed, Baltic bonus grade cargo done to Turkish mill

A US-origin scrap sale was made to a large electric arc furnace in North Turkey, while late on Thursday a tender was settled for a small, Baltic-origin cargo with a blast furnace producer in South Turkey, market participants confirmed on Friday.

The Baltic-origin cargo contains bonus material and used rails, 15,000 mt in total, and was sold at some $360/mt CFR Iskenderun to the BF mill. The US-origin cargo was done with an EAF in North Turkey at $349/mt CFR Marmara, as reported on Thursday.

Platts daily assessment remained at $345/mt CFR Turkish ports on Friday, having increased $15/mt since the foot of the market eight days before for premium heavy melting scrap I/II (80/20 blend).

An upturn in the US hot-rolled coil market is behind the turnaround in scrap prices within the US home market. This has fed almost immediately into a change in export prices, with Turkey showing some purchasing activity in the early $340s/mt CFR for high-grade HMS.

Turkish steelmakers have also managed to pass on some of the expected up-tick in scrap prices from the US onto their end-user customers, with rebar moving up $8/mt on the Platts FOB Turkey assessment this week.

Another tender was due to be concluded Friday with a second EAF mill in Turkey, but information on the result was thin.

Meanwhile, indications for a Ukraine-origin pig iron tender for July production were given to various international traders. The price offered is $368/mt FOB Berdyansk from the large mill offering, a price only $10-12/mt down on the June output sales made in early May.