Deep sea scrap prices for Turkey have increased once again in a new ex-EU deal disclosed to the market today, March 8. Earlier today, several deals from Europe were reported by SteelOrbis.
Market players state that the latest cargo was bought from France and includes 9,000 mt of HMS I/II 80:20 scrap at $640/mt CFR and 5,000 mt of shredded at $665/mt CFR. Although it has not been confirmed by the seller by the time of publication, the deal is widely believed to have been done. Accordingly, European HMS I/II 80:20 scrap prices have surged up from the levels recorded earlier today - from $629-633/mt CFR to $640/mt CFR.
The main problem for sellers has become their previous contracts, since the previous price levels were almost $200/mt lower than the current levels. It is also worth noting that the tonnages in the recent cargoes from several sources were lower than usual. “This may mean we can count on more deep sea cargoes in March,” a source commented. A European supplier has reported that the rises in export yards are impacting the local market, adding, “Some Italian plants are debating whether they should halt production or not.” Also, SteelOrbis observes that some agencies in Turkey have advised their suppliers to only sell ready cargoes to minimize the risk of losses as prices are increasing at a fast pace. “Domestic rebar prices in Turkey are getting closer to $1,000/mt ex-works, which is a psychological threshold for the market. This situation reminds all of us of 2008,” a trader stated today.
