Sentiment in the import scrap in Turkey, which was already negative, has been hit by newly-closed deals for deep sea cargoes.
Today, February 4, reports of two scrap lots sold from the US to Turkey at $261-262/mt CFR for HMS I/II 80:20 have been actively discussed in the market. The details were not fully confirmed by the time of publication, but most market sources consider these transactions as done. “Everyone is sure these were actually signed as the level is close to what the market has been feeling,” a trader said. As a result, SteelOrbis’ daily assessment for the mentioned grade has moved down by $6/mt.
Moreover, an ex-St. Petersburg cargo has been sold to an Iskenderun region-based Turkish steel producer. The lot included 25,000 mt of HMS I/II 80:20 at $251/mt CFR and 5,000 mt of bonus grade at $261/mt CFR, for shipment in March. “Mathematically, the ex-Baltic scrap benchmark should be at $253-255/mt CFR for HMS I/II 80:20 scrap,” a source said.
The ex-Baltic scrap cargo was closed at a lower level than expected, bringing sentiment down further. Sources have trouble estimating the bottom levels for scrap in February, though some expect the prices to settle at $245-250/mt CFR at the lowest in the coming weeks.
