With Turkish mills continuing to buy scrap, their ex-Baltic scrap prices have reached $377/mt CFR. For now, this rise is in line with the initial expectations, but some market players expect prices to move up further in the coming period.
A Marmara-based Turkish producer has concluded a deal with the HMS I/II 80:20 scrap price standing at $377/mt CFR. Ex-Baltic scrap reference prices have increased by $3/mt and pushed estimations for ex-US scrap prices up to $377-380/mt CFR.
Also, an ex-EU scrap deal was done by an Izmir-based Turkish producer for a total of 40,000 mt. The HMS I/II 80:20 scrap in the cargo was priced at $372/mt CFR and bonus grade was sold at $392/mt CFR. As a result, ex-EU scrap prices have increased by $4.5/mt.
Meanwhile, US Northeast and Ohio Valley scrap prices have settled for November, at up $20/gt for HMS, P&S and shredded, and up $30/gt for busheling scrap. As SteelOrbis mentioned in its previous report, European scrap collection prices are now above €300/mt DAP. These collection prices are expected to easily pull ex-EU scrap quotations up above $370s/mt CFR. As a result, suppliers’ costs are increasing. On the other hand, higher scrap prices are leading to new long steel offers. Several Turkish mills are increasing their rebar prices step by step, while a few mills have been raising their prices sharply since the beginning of this week. As a result, most local buyers are destocking before buying new material and are monitoring the import scrap price trend closely.
Meanwhile, a Romanian cargo consisting of HMS I/II 80:20 scrap has been sold to another Marmara-based producer at $359/mt CFR. Also, an ex-Croatia cargo with 15,000 mt of HMS I/II 80:20 scrap is reported to have been sold at $363/mt CFR Izmir, though this deal was not confirmed by the time of publication. An ex-Mediterranean cargo was also sold at $344/mt CFR. Short sea scrap suppliers also report that there has been a significant revival in demand.