A second ex-Europe deal in Turkey disclosed to the market today, September 30, has indicated a slightly higher price compared to the deal recorded earlier today.
SteelOrbis has learned that a steelmaker in Turkey’s Iskenderun region has concluded a deal for a cargo consisting of 25,000 mt of HMS I/II 80:20 scrap, 5,000 mt of shredded scrap and 10,000 mt of bonus grade scrap at the average level of $442/mt CFR. The cargo will be shipped in the first half of November and the HMS I/II 80:20 scrap price is estimated to be at $434.5/mt CFR, with the premium being $20/mt. Earlier today, another European cargo was reported by SteelOrbis in which the HMS I/II 80:20 scrap price was at $433/mt CFR.
A flat steel producer stated that there are two groups of buyers in Turkey, with one group not willing to increase deep sea scrap prices above $435/mt CFR, while the other seems to be willing to accept prices in the lower $440s/mt CFR levels for cargoes that contain shredded. “High grade scrap supply is still tight and, with the US staying out of the market ahead of the settling of prices in their domestic market, it is not easy to make an estimation for the coming month,” the source stated. On the other hand, a US scrap supplier reported that there are more buyers in the market as compared to the number of sellers, and so they think prices are set to rebound. While agreeing that the US will not return to the market before the settlement of domestic scrap quotations, this player expressed the view that the low levels of shredded scrap supply mean that the gap between shredded and HMS I/II 80:20 scrap prices may increase. While the international steel market is trying to evaluate the future impact of the rises observed in energy costs, the US market is not so interested in this situation, SteelOrbis understands. However, these increases are expected to have a significant impact in Europe. Meanwhile, one source stated that “scrap tonnages from St. Petersburg have declined a lot over the past months, while domestic scrap prices in Turkey are on the high side, and finding high scrap grades is becoming harder. But, also, Turkey’s finished steel sales are not strong and this will influence the mood in Turkey’s import scrap market in the coming days”.