Ex-Europe scrap prices for Turkey have increased a little, while Baltic scrap prices have remained stable as Turkish mills continue their deep sea scrap purchases. Three deals disclosed to the market today, August 17.
An ex-Netherlands deal has been closed by an Izmir-based producer for 22,000 mt of HMS I/II 80:20 at $370/mt CFR, 4,000 mt of bonus grade scrap at $390/mt CFR and 4,000 mt of shredded scrap at $395/mt CFR. This level is $1.5/mt higher than the previous price fixed in deals.
An ex-Baltic deal has also been done by an Iskenderun-based producer with HMS I/II 80:20 scrap standing at $370/mt CFR and bonus grade scrap at $390/mt CFR.
Additionally, there is a rumour of an ex-Denmark cargo sold to a Marmara-based mill for HMS I/II 90:10 scrap at $382/mt CFR. This price signals $379/mt CFR for HMS I/II 80:20 scrap, but the cargo is “very prompt”, as SteelOrbis heard. Hence, this level is not considered to be a benchmark for now.
It is observed that suppliers are very confident that import scrap prices will continue their uptrend for now. A major European scrap seller said that the scrap supply deficit in the market is still the determining factor and is stronger than the lack of finished steel demand globally. “With the recession in the EU, especially premium grade scrap prices will rise, while there are not enough premium grades coming from industrial production,” the source said. While some sellers believe deep sea scrap has some room to move up towards $380/mt CFR, others think the peak may be reached at $375/mt CFR. Still, players are debating whether there will be a downward correction or not when prices hit the peak. “This time, there is a possibility of a downward correction when this appetite slows,” a source commented. Currently, HMS I/II 70:30 scrap prices in Amsterdam and Belgium are at €290/mt DAP, while HMS I/II 80:20 prices are at $300/mt DAP Belgium and bonus grade prices are at €315/mt DAP Belgium.