As two ex-EU scrap deals are disclosed to the market late today, March 4, European benchmark HMS I/II 80:20 scrap prices have exceeded expectations.
SteelOrbis has learned that an ex-Belgium deal was closed by a Marmara-based mill for a cargo consisting of 15,000 mt of HMS I/II 80:20 scrap, 7,500 mt of shredded scrap and 7,500 mt of P&S grade scrap at the average level of $625/mt CFR. This deal signals for $613-615/mt CFR for benchmark grade and is in the range of SteelOrbis’ estimations for European origin at $610-620/mt CFR.
However, there was another deal done by an Iskenderun-based producer from Germany with full HMS I/II 80:20 scrap at $623/mt CFR. This level is $3/mt higher than the initial expectations.
A sub-collector in Germany reported today that some local producers have halted their bids for domestic scrap, mentioning they cannot compete with the prices given by Turkey. A scrap seller in western Germany stated that they have concluded some sales to Antwerp: E3 grade scrap was sold at €505/mt, HMS I/II 70:30 scrap was at €485/mt and HMS I/II was at €475/mt, all DDP Antwerp. “Some domestic scrap suppliers are now eyed for export yards. Since local producers are showing some resistance to the new price levels and export yards are still paying higher, they are offering their material to exports,” the source commented. Also the €/$ parity is working in favor of European sellers. On the other hand, many deep sea scrap sellers are avoiding taking the risk of sharing offers with Turkey while prices are moving up in this unparalleled pace. The number of offers is still on the low side as compared to the need of Turkish mills. The uptrend of the import scrap market is expected to continue in the coming week.
