*Physical scrap moves higher on increased fixtures prior to Turkish holiday
Turkish scrap import prices continued to strengthen this week, amid strong finished product demand. A Baltic based seller recently transacted an HMS 80:20 and bonus scrap cargo at $271/t and $281/t CFR respectively, a $5 increase over where physical was trading last week. However, as we near Eid holidays, scrap activity is expected to quieten a touch. Naturally, following the strengthening of the physical market, scrap futures have ticked upwards. September has ended in a standoff for the past days at 275/278, whilst October value moves $6 higher to $276/t.
*EHR futures activity continues to grow
The Northwest European HRC has jumped €7 over the last week with the anticipation of stronger prices after summer, Argus reports. More recently, Tata Steel have announced a €55/t price increase, increasing offers to €450/t for DD11 material. Futures activity over the past week has been largely focussed on the front months of the curve. September has traded in a total of 3kT, clearing yesterday at €432 in 500t, a €3 drop from last done.
*FOB China HRC index moves $38 higher since the start of the month
The FOB China HRC index continues to show strength, which has now moved $38/t higher since the start of the month, amid strong domestic Chinese steel demand. Argus reported that major Chinese mills have increased their offer levels by $5 to $485-$495/t in response to the improved sentiment. Futures have similarly moved higher over the past week. Q121 printed at $458/t in 1kT/m, whilst more recently September traded at $468/t in 2kT.