An ex-European scrap deal has been disclosed to the market, signalling a continued upward trend in prices.
SteelOrbis has learned that an ex-Germany scrap deal was done by an Iskenderun-based mill for 15,000 mt of HMS I/II 80:20 scrap at $377/mt CFR. While the total tonnage of the cargo is 25,000 mt, there is bonus and shredded scrap each 5,000 mt in the cargo at $397/mt CFR. It is known that the deal was done Thursday, August 4. This level is higher than the previous estimations in the range of $365-370/mt CFR for this grade.
Market players think that as of today, August 8, European suppliers would ask higher than $380s/mt CFR and US suppliers would seek for $390/mt CFR and above, both for benchmark HMS I/II 80:20 scrap. “The problem is the very slow scrap flow in the EU, and the delivery terms asked by the buyers,” a source commented. SteelOrbis understands that if a Turkish mill needs a closer delivery term, it would be forced to accept higher price levels. Also, the collection prices in the EU have been increased by €15-20/mt further today, reaching to €300-310/mt. The rumors of finished steel and semi-finished steel exports from Turkey are supporting the uptrend in the scrap market. Additionally, traders in the local rebar market are reporting that there is a demand from construction sites, which was not observed for a long time.
A short sea scrap supplier states that they are expecting deep sea scrap prices to reach and breach $400/mt CFR, hence they are in no rush to sell scrap to Turkey. “I think sellers in our region [Bulgaria and Romania] would accept prices around $370-375/mt CFR,” the source commented.