As SteelOrbis reported yesterday, January 3, deep sea scrap demand from Turkey has caused prices to recover to the previous levels recorded before the holiday lull.
SteelOrbis has learned that an Izmir-based Turkish producer concluded a deal yesterday, for HMS I/II 80:20 scrap at $414/mt CFR and shredded scrap at $439/mt CFR. The total tonnage in the cargo is around 25,000 mt and the $25/mt difference between grades has attracted attention. Accordingly, European scrap prices have moved up by $9/mt in one booking. Also, an Iskenderun-based producer has concluded an ex-Belgium deal consisting of 25,000 mt of HMS I/II 80:20 scrap and 15,000 mt of shredded and bonus grade scrap at the average level of $424/mt CFR. The HMS I/II 80:20 scrap price equals $414/mt CFR if the price difference between HMS I/II 80:20 scrap and shredded is considered to be $25/mt as SteelOrbis believes.
Meanwhile, an ex-US scrap deal is reported to have been done by an Iskenderun-based producer yesterday, with HMS I/II 80:20 scrap standing at $419/mt CFR. This deal pushes ex-US prices up by $4/mt. Additionally, another deal done by a Black Sea-based mill on January 2 has been disclosed to the market with HMS I/II 95:5 scrap at $415/mt CFR and P&S scrap at $430/mt CFR. The cargo’s latest shipment date is February 10.
Amid the rising trend observed in Turkey, some scrap exporters have also raised their bids for domestic scrap purchases. An Amsterdam-based exporter who was paying €325/mt DAP for ex-German scrap is now bidding at €330/mt DAP and says they are expecting a further increase in their collection prices. Meanwhile, SteelOrbis has heard that European scrap exporters may have trouble with transportation on waterways, as water levels are very high due to ongoing rainfalls and are causing disruptions, according to sources. Before Turkish mills took a step back from deep sea scrap purchases in December, prices were in the range of $421-428/mt CFR, remaining at these levels for 18 days. If Turkish mills decide to conclude a rapid round of purchases again, this range may easily be seen again with sellers keeping their offers firm.
