An ex-EU scrap deal in Turkey has been disclosed late today, October 8, pushing up prices significantly.
SteelOrbis has learned that an Iskenderun-based mill bought the cargo from Belgium which consists 20,000 mt of HMS I/II 80:20 scrap, 10,000 mt of shredded scrap and 10,000 mt of bonus grade scrap at the average level of $478.75/mt CFR. The cargo will be shipped in the first half of November, while the benchmark HMS I/II 80:20 scrap quotation is estimated to be at around $451-452/mt CFR, surging up from the $445/mt CFR level recorded earlier this week.
As a result, it is safe to say that European scrap prices will push other regions up with itself. For US origin HMS I/II 80:20 scrap, buyers are reportedly ready to accept $460/mt CFR for benchmark grade, though sellers are in no rush amid their expectations of a further rise. Demand from Turkey is very strong, SteelOrbis understands. An European scrap supplier states that ArcelorMittal Luxemburg has kept its local scrap prices stable on negotiations with French sellers. The initial expectations were €10-20/mt decrease on ArcelorMittal’s bids. The positivity is also felt in the local Turkish steel market. With traders’ rebar prices closing the previous days higher than mills’ domestic rebar offers, the sentiment is strong. In the current week, local billet prices in Turkey have also increased.
