Two ex-EU scrap deals, one done on Monday, December 5, have been disclosed to the market with prices reaching to $380/mt CFR for benchmark HMS I/II 80:20 scrap.
SteelOrbis has learned that the ex-Germany deal was done by an Izmir-based mill with HMS I/II 80:20 scrap at $378/mt CFR. Previously, ex-EU benchmark grade scrap quotations were in the range of $370-375/mt CFR.
Also, an Iskenderun-based producer has concluded another ex-EU deal for 9,000 mt of HMS I/II 80:20 scrap at $380/mt CFR, 6,000 mt of shredded scrap at $400/mt CFR and 7,000 mt of bonus grade scrap at $400/mt CFR. The cargo will be shipped in the second half of January.
The uptrend in Turkey’s deep sea scrap prices continues as Turkish mills seek cargoes to be shipped in January, though, according to some sources, most mills are now looking for bookings with shipment in the second half of January. Collection prices in the Netherlands have reached €320-325/mt DAP, while German sub-collectors stated that this price is more attractive than their own domestic market levels. According to one source, “Selling to export yards right now is €10-15/mt more attractive than selling to European mills, which have decided to keep their procurement prices stable.” A European scrap supplier is heard to be targeting $380/mt CFR Turkey. A source from a Turkish mill stated that the local rebar market has started to lose momentum, stating, “We have already passed beyond the seasonal demand. Rebar prices are set to maintain a sideways movement during the rest of the year, and there is a potential of a slight decline if mills decide to sell a bit more before the year ends.” Despite the slower demand conditions in the local rebar market, a sharp decline in the deep sea scrap segment is not foreseen by this source.