Having resisted the lower price ideas coming from Turkey for weeks now, deep sea scrap prices from the US and Europe have consolidated in the unusually narrow range of $380-382/mt CFR, in three separate deals. All three bookings were done very lately, close to one other.
SteelOrbis has learned that an Izmir-based producer concluded a deal from France yesterday, March 20, for 17,000 mt of HMS I/II 80:20 scrap at $381/mt CFR, 4,000 mt of shredded scrap at $401/mt CFR and 3,000 mt of bonus grade scrap at $401/mt CFR. The cargo will be shipped in April, with a latest shipment date of April 20. This price is $3.5/mt higher than that in the previous booking done from Europe. According to another rumour, ex-Germany HMS I/II 75:25 scrap was sold to the Marmara region at $378/mt CFR, but this information was denied by the seller, who is asking for higher levels at present.
An ex-US scrap deal was closed by a Marmara-based producer also yesterday, for HMS I/II 80:20 scrap at $382/mt CFR, and with shredded and bonus grades at $402/mt CFR. The cargo will be shipped in April.
Lastly, an ex-Murmansk booking was done by an Izmir-based producer, with the cargo consisting of 20,000 mt of HMS I/II 95:5 scrap in total at $395/mt CFR. This information signals $380/mt CFR for HMS I/II 80:20 scrap.
Market sources report that the consolidation of the prices will not last long. The European HMS I/II 80:20 scrap prices are expected to remain higher than $380/mt CFR in the coming deals, while US suppliers are expected to aim for $385/mt CFR and above. Not much of an increase in deep sea scrap prices is anticipated right now, and market sources are cautious ahead of the local elections to be held in Turkey on March 31. Collection prices in the EU remain in the range of €310-315/mt DAP. Turkey’s central bank has increased interest rates to 50 percent in a surprise move today. The Turkish lira has appreciated to 31.86 against the US dollar. “This appreciation is not permanen. Traders may decide to buy some rebar due to their expectations of a further depreciation in the coming period,” a trader commented. The lira was standing at 32.41 to the dollar before the latest announcement from the central bank.
Short sea HMS I/II 80:20 scrap prices from Romania are now standing in the range of $355-360/mt CFR Turkey. Market sources think that the upward movement in the deep sea segment will help short sea scrap quotations too.