The ex-US scrap deal heard in Turkey today, February 28, at $313/mt CFR Turkish ports for HMS I/II 80:20 scrap has given rise to diverging views in the market. Some market players believe this deal is evidence that the falling trend of scrap prices is continuing, while others see the latest price levels as the start of a recovery.
At this point, SteelOrbis thinks that it is important to remember that the previous ex-US scrap transaction in Turkey was concluded in the first week of February, with the price of HMS I/II 80:20 scrap at $330/mt CFR. Following this booking, no ex-US scrap deal has been heard in particular given the downward trend of global scrap prices as of mid-February which moved in accordance with SteelOrbis’ predictions published at the beginning of the month. In the meantime, it is observed that scrap offers from the US to Turkey have decreased from $330/mt CFR Turkish ports to $320/mt CFR Turkish ports.
In the current week, SteelOrbis reported that ex-US scrap offers to Turkey were at $320/mt CFR Turkish ports, with Turkish mills’ price ideas at lower levels. As a result, the deal concluded at $313/mt CFR Turkish ports is consistent with the downward tendency of ex-US scrap quotations in February. On the other hand, considering the ex-Baltic HMS I/II 80:20 scrap price recorded last week at $307/mt CFR Turkish ports, it may be considered that scrap prices are recovering. However, both deals are in accordance with the downward trend of the market.
The lower end of HMS I/II 80:20 scrap prices in SteelOrbis’ Daily Steel Prices section has been at $307/mt CFR Turkish ports since last week, while the upper end has been at $320/mt CFR. Following the developments seen in the market, SteelOrbis has revised the upper end of HMS I/II 80:20 scrap prices to $313/mt CFR Turkish ports. As a result, the average HMS I/II 80:20 scrap prices in SteelOrbis’ Daily Steel Prices section have decreased by $3.5/mt.