Electrode shortage sends Turkey import billet, scrap price gap to five-year high

Turkey's import billet price premium over imported scrap reached its highest level in more than five years in September, according to Metal Bulletin data.

This was driven by a shortage of graphite electrodes, used in electric arc furnaces (EAF), which triggered a shift by mills away from sourcing scrap towards billet.
Metal Bulletin's price assessment for billet imported into Turkey hit a peak of $530-535 per tonne cfr on September 21 before falling to $495-510 per tonne cfr on September 28.

This put the premium over imported HMS 1&2 (75:25)  scrap at $222.50 per tonne on September 22 – the widest gap recorded by Metal Bulletin since June 2012, when steep gains in billet prices pushed the gap to $260.00 per tonne.
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Published

Reginald Ajuonuma

October 02, 2017

12:47 GMT

London