Another small increase in deep sea scrap prices is observed in Turkey, with an ex-Baltic deal.
SteelOrbis has learned that a Black Sea-based producer has concluded an ex-Estonia booking, with the HMS I/II 80:20 scrap standing at $372/mt CFR. The most recent ex-Baltic deals were closed at $370/mt CFR, hence prices have continued their uptrend with a slower pace.
Demand for scrap continues in Turkey, mills have decided to keep their capacity utilization rates for now since energy prices have remained stable. Turkish market expects another price increase for energy but in October, citing a statement done by Turkey’s minister of energy. Meanwhile, scrap suppliers are expecting prices to move up towards $380/mt CFR Turkey, while some mills believe prices will stand put around $375s/mt CFR. According to scrap suppliers, demand coming out of the Indian sub-continent have supported them and took away some of the pressure created by Turkey’s absence before this round. “There is still some demand coming out of the region but I see that it is slowing down a bit,” an European scrap seller said. As SteelOrbis has already reported on Wednesday, August 16, import scrap prices in India have increased with sellers submitting higher offers, but trade activity has become muted with the local currency depreciating to a 10-month low against the US dollar, coupled with buyers remaining uncertain over the sustainability of the uptrend. Although the Bangladeshi steel sector has continued to face numerous challenges, including slow end-user demand and unstable economic conditions, this week Bangladeshi scrap importers have been rather active in negotiations given the continuous increase in prices. However, while new deals have been reported in the containerized segment at higher levels, in the bulk segment ongoing negotiations have not resulted in fresh bookings so far. Import scrap prices in Pakistan have continued to rise, as fixed in several deals, but buying is expected to improve more in the short run as customers are coming back from the national holiday, while global market conditions appear strong and sellers are optimistic in pushing up the overall price line.