Following the ex-St. Petersburg scrap deal concluded in Turkey earlier this week, another transaction with the same origin disclosed to the market today, December 17, has pushed prices up by $9/mt.
SteelOrbis has learned that a Marmara-based mill has concluded the deal in question for HMS I/II 80:20 scrap at $444/mt CFR and bonus grade scrap at $454/mt CFR, for January shipment. Previous to this deal, another ex-St. Petersburg booking was closed at $435/mt CFR for HMS I/II 80:20 scrap.
Market sources state that the positive sentiment in the international steel market is supporting the deep sea scrap quotations in Turkey, while the shortage observed in the supply side is also a big factor. As some countries have decided to initiate long lockdowns for the coming period until January 10, the situation is getting worse on the supply side and the holiday season in other countries is at the door. The collection costs are rising amid harsh winter conditions. There is a serious snow and ice storm expected in the Northeast of the US, which also is expected to take its toll on collection activities, market sources state, adding that sales from the US to third parties such as Mexico and Brazil continue. Some market sources state that the US-based suppliers are seeking for around $450/mt CFR levels for HMS I/II 80:20 sales to Turkey. One major European supplier states that as long as this global rally in prices continue, deep sea prime grade scrap prices in Turkey are set to move up further.
