As Turkish mills continue to procure their scrap needs for October and early November, deep sea scrap prices are moving up. Additionally, some unconfirmed ex-US deals have been heard in the market.
SteelOrbis has learned that an ex-Netherlands deal was done by an Izmir-based producer, with the benchmark HMS I/II 80:20 scrap standing at $364/mt CFR. The cargo is believed to be for shipment in late October. Prior to this deal, ex-EU scrap prices were standing at $360/mt CFR in a deal earlier this week.
There are rumours about two separate deals from the US, with the first figures signaling $369-372/mt CFR for the HMS I/II 80:20 scrap price. When the details are confirmed, they will be shared in a separate report.
Also, an Izmir-based mill has concluded an ex-Venezuela deal for HMS I/II 80:20 at $372/mt CFR.
SteelOrbis hears that the number of deep sea offers to Turkey has increased. While some market players on the sellers’ side believe that the market has settled at $360-375/mt CFR, while others expect this round of bookings to end at around $370-380/mt CFR. According to a market player “Turkey still needs around five to six cargoes for October shipments and this may support the market.” It has also been learned that there are enough cargoes to cover this delivery period in the market. A European scrap supplier is heard to be paying around €325-330/mt today for material delivered to the Netherlands, supporting the idea that some sellers are targeting higher levels. “I do not know how long we can see these prices. I think we are nearing an end for the uptrend,” a seller commented. Another SteelOrbis source commented, “We should look pass the immediate needs of Turkish mills. After the purchases for short delivery terms are done, I am not sure the price can remain this firm.” A European contact reported that a major steel mill in the region is planning to significantly cut its scrap purchases, “I believe this may cause an increase in the supply,” a source commented.
In the short sea segment, the number of offers to Turkey from Romania and Bulgaria is still on the low side. The HMS I/II 80:20 scrap price in this segment has reached $350-354/mt CFR Marmara region in two deals, for a total of 10,000-15,000 mt. The margin between short sea and deep sea scrap prices is narrow as sellers are resisting higher levels.
