Deep sea deals disclosed to the market today, May 5, indicate another sharp increase for HMS I/II 80:20 scrap prices to Turkey.
SteelOrbis has learned that a Black Sea-based Turkish producer has concluded an ex-Germany deal for HMS I/II 80:20 scrap at $463/mt CFR, shredded scrap at $468/mt CFR and bonus grade scrap at $473/mt CFR. The cargo will be shipped in June. Prior to this transaction, an ex-Belgium deal was transacted at $448-450/mt CFR for benchmark HMS I/II 80:20 scrap.
Additionally, the same steelmaker has concluded another deal from Finland for a cargo consisting of HMS I/II 80:20 scrap and shredded scrap at $471/mt CFR and $482/mt CFR, respectively, for June shipment. Previous estimations for Baltic origin HMS I/II 80:20 scrap were in the range of $450-455/mt CFR.
In the short sea segment, levels of $445-450/mt CFR Turkey are considered workable for HMS I/II 80:20 scrap from Romania and the Adriatic region. No deals have been done at these levels yet.
The positive sentiment in Turkey’s finished steel market has been reflected in the deep sea scrap segment, and Turkish mills’ demand for scrap is currently lively. US suppliers are still out of the market, while they are aiming for higher levels as they wait for their domestic market to settle. One source from Germany stated today that European mills are concerned about the high tonnages sold to export markets, and so they have increased their own purchase prices and have started to seek some grades that are usually sold to foreign countries. Meanwhile, today, Turkish producer Kardemir opened its rebar sales at TRY 5,575/mt ($668/mt) ex-works, up by TRY 450/mt ($45/mt) compared to its previous list price dated April 28. Overall, Kardemir succeeded in selling around 20,250 mt of rebar and closed its rebar sales after a couple of hours. Some market players think the tonnage is higher. China is set to return to the market tomorrow from its holiday, while expectations regarding China’s return are positive and the country is expected to continue to be the driving source of the steel market. Also, Turkey’s Central Bank is due to make an announcement tomorrow regarding interest rates.
