An ex-Belgium scrap deal closed today, August 18, in Turkey has pushed down ex-Europe prices for scrap once again.
SteelOrbis has learned that the booking was done by a Black Sea region-based Turkish steelmaker for a cargo consisting of 25,000 mt of HMS I/II 80:20 scrap, 7,500 mt of bonus grade scrap and 7,500 mt of shredded scrap at the average price level of $451/mt CFR. The cargo will be shipped in the second half of September. Although the HMS I/II 80:20 scrap price depends on how much more is paid for shredded, market players estimate it to be around $443/mt CFR, with the difference between HMS I/II 80:20 scrap and shredded at $20/mt as observed in the recent ex-Europe deals. This is $2/mt lower than the HMS I/II 80:20 scrap price recorded in the ex-Germany booking SteelOrbis reported earlier today.
As mentioned earlier today, sentiment in Turkey’s import scrap market continues to be negative. A German supplier today stated that offers from their own region are higher than the levels they received in Turkish bids; particularly they received an offer from a French buyer for bonus scrap at €410/mt ex-works, E2 grade scrap at €460/mt ex-works and steel turnings at €342/mt ex-works, even higher than the quotations in Germany. A supplier working from France also mentioned that they have lowered their tonnages for Turkey over the past month amid good demand levels in their own region and in alternative markets.
