The sentiment in the import scrap market of Turkey remains negative as another sizeable drop of deal prices has been registered recently. An Izmir region-based steel producer has purchased a 25,000 mt lot of HMS I/II 80:20 at $240/mt CFR. The cargo of St. Petersburg origin will be shipped in the first half of October, SteelOrbis understands. According to the mentioned transaction, the Baltic region scrap prices have decreased by $7/mt once compared to the previous deal, closed just last week.
As a result, the expectations in the scrap market remain on the downward side. In addition, according to the market sources, the scrap suppliers in the US and also in some European countries have decreased their collection prices, which may as well be interpreted as a negative sign for the market trend. “Producers haven't sold anything yet. This decline is due to the silence of the mills rather than the aggressiveness of the scrap suppliers. We cannot explain the process we are going through with logic, psychology is far ahead,” one of the Turkish sources told SteelOrbis.
While most market players find it difficult to estimate the current workable level for the US origin of HMS I/II 80:20, some say that the tags have to be at around $242-245/mt CFR.