London — The Turkish ferrous scrap market rose on Tuesday as Chinese rebar prices hit a near 10-year high due to production curtailments to tackle pollution.
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Platts TSI assessed Turkish imports of premium heavy melting scrap I/II (80:20) at $346/mt CFR Tuesday, an increase of $11.50 from Monday's assessment.
Three cargoes were heard sold late Monday and three more on Tuesday at notably higher prices than last week's deals.
The latest trade confirmed was a Benelux cargo sold to a Samsun based mill consisting of 15,000 mt 75:25, 5,000 mt shredded and 20,000 mt plate and structural at an average cargo price of $350/mt. This equates to $346/mt for 80:20 material.
A European trader said the Chinese production cuts were the main influence on scrap prices. He added that strong demand in Europe and the US were the other main price drivers at the moment.
Some sources said they believed the market may see further increases before the end of the year. "I would not be surprised if we see prices around $370/mt in the near future," a European trader said. Adding that in the domestic EU market "prices are...already reach[ing] the top levels of last the two years."
The Turkish scrap swaps forward curve, which is settled against the Platts TSI daily assessment, was trading at $344.50/mt for the current month, up $2 from Monday.
January was trading at $347/mt, while February and March 2018 flattened out the curve, with both at $346.50/mt.