Following the deep sea scrap bookings closed yesterday, April 29, another deep sea scrap transaction has indicated a sharp surge in quotations for HMS I/II 80:20 scrap.
SteelOrbis has learned that an Iskenderun-based Turkish producer has concluded a deal from Belgium for a cargo consisting of 20,000 mt of HMS I/II 80:20 scrap, 8,000 mt of shredded scrap, 10,000 mt of bonus grade scrap and 2,000 mt of busheling scrap at the average price level of $453/mt CFR. The cargo will be shipped in the second half of June. According to market players, the benchmark HMS I/II 80:20 scrap price is estimated to be around $448-450/mt CFR Turkey. As a result, ex-EU HMS I/II 80:20 scrap prices have moved up sharply from $428.5/mt CFR Turkey fixed in the previous ex-Belgium deal that was disclosed to the market yesterday.
The level of HMS I/II 80:20 scrap in the new ex-Belgium deal is higher than the one closed from the Baltic region just yesterday at $440/mt CFR. Some sellers from Europe are expecting quotations to move up further, while suppliers in the US are reportedly waiting to see the settled May buy-cycle prices in their local scrap market, which are forecast to rise. SteelOrbis hears that scrap collectors have started to ask higher price levels after China’s decision to cancel its export tax rebates. A slight revival in the local Turkish rebar market has also been observed, with sentiment more positive in terms of trading.
Meanwhile, on the short sea side, demand is reviving. Suppliers are in no rush to conclude sales and instead are monitoring the market amid their expectations of an increase in prices. Workable levels for HMS I/II 80:20 scrap from Romania and the Adriatic region are estimated to be around 425/mt CFR and above. An Iskenderun-based mill has concluded an ex-Israel booking for HMS I/II 75:25 scrap at $393/mt CIF this week. This deal was made before the price surge on the deep sea side, and sellers state that their target for the next deals is $405/mt CIF and above.