Prime grade scrap in Turkey is now closer to $510/mt CFR, in a new ex-Finland deal disclosed today, February 10, while another ex-Netherlands deal signals a similar trend for European origin scrap.
SteelOrbis has learned that a Black Sea-based producer has bought the ex-Finland cargo with HMS I/II 80:20 scrap at $507/mt CFR and bonus grade scrap at $527/mt CFR. Before this booking, ex-Baltic HMS I/II 80:20 scrap prices were in the range of $497-500/mt CFR.
Meanwhile, an ex-Netherlands deal has been closed by an Izmir-based mill with HMS I/II 80:20 scrap standing at $496/mt CFR. This deal also indicates an approximate $3/mt increase in European benchmark prices.
“With the current price levels mentioned, ex-US scrap cannot remain at $500-502/mt CFR,” one market player commented. Although SteelOrbis observes that not many offers from the US are being received by buyers for the time being, estimations for ex-US HMS I/II 80:20 scrap will be raised to $505-510/mt CFR. It is also heard that Turkish rebar producers are gradually increasing their domestic prices, with some closing their sales at lower levels towards the end of today to set higher price levels. Players in the rebar market admit that demand is not strong but they are positive about future demand. “There is still snow in some regions of Turkey, which is taking its toll on construction projects,” a source commented. Another said, “Increasing costs will be reflected in finished steel prices, and scrap is a big influencer right now.” On the other hand, there are some uncertainties surrounding the construction sector due to tight liquidity and exchange rate risks, as well as the mentioned rising costs.
SteelOrbis has also learned that an ex-Romania deal for HMS I/II 80:20 scrap has been done in Marmara at $481/mt CFR, causing a $1/mt increase on the lower end in SteelOrbis’ estimated short sea price range.
