Several ex-Europe scrap deals have been disclosed today, November 14, with the prices recorded in the deals higher than the previous ones. As a result, the price estimations for the other scrap supplying regions have also moved up, though market players have voiced mixed feelings regarding the latest price increase.
An ex-UK cargo has been bought by an Izmir-based producer with the HMS I/II 80:20 scrap price at $379/mt CFR, and with shredded and bonus scrap at $404/mt CFR. The deal was done on Friday, November 10.
There were two other deals done for ex-EU scrap, one from Germany with HMS I/II 80:20 scrap at $375/mt CFR and the other from the Netherlands again for HMS I/II 80:20 scrap at $375/mt CFR, both to another Izmir-based producer. Accordingly, ex-EU scrap prices have increased by $4.5/mt.
Currently, ex-Romanian HMS I/II 80:20 scrap prices are in the range of $360-363/mt CFR. Meanwhile, workable levels for Italian and French HMS I/II 80:20 scrap are at $370-75/mt CFR, SteelOrbis hears. An ex-France cargo is bought by an Iskenderun-based producer for HMS I/II 80:20 scrap at $373/mt CFR and P&S grade scrap at $393/mt CFR.
A European scrap supplier said today, “Turkish mills are trying to complete their purchases for late December shipments before the holiday season which will last approximately 20 days. Given the holidays and the winter weather conditions, supply is expected to be on the low side.” However, with European scrap export yards’ collection prices hitting €305/mt DAP, supply flow to yards seems faster than it was. One source reported, “The current collection prices have attracted interest and some sub-collectors are easier to convince now.” SteelOrbis confirms that some sub-collectors, which had initially showed resistance to reducing their inventories ahead of the new year, have concluded sales. Meanwhile, there are buyers in the market seeking cargoes, though they are not in a rush. A source at a major Turkish mill commented “There are offers from the US at $385-390/mt CFR, but I seriously do not expect ex-US prices to hit even $385s/mt CFR. I believe the turning point in this round will be around $380s/mt CFR.” A seller of ex-US and ex-EU scrap said that the peak for deep sea scrap prices may be at around $380-383/mt CFR and then sideways movement may be seen in the market. It should be recalled that Turkish mills’ official domestic rebar prices are in the range of $580-585/mt ex-works, while demand for rebar is still sluggish. A further increase in scrap prices before rebar demand recovers could risk destabilizing the steel market. On the other hand, the limited billet availability in the import segment continues to weigh on the Turkish market, leading to acceptance of higher prices in some cases. Additionally, the Turkish flat steel market is strong, with Turkish mills selling hot rolled coil (HRC) to both the export and domestic markets and with prices remaining firm for the local market and reaching higher levels in the export segment. Lately, there have been two slab deals from Malaysia and there is a lack of cheap options, though Turkish mills do not buy much slab to substitute scrap, but to increase their HRC production.