After yesterday’s ex-Baltic deal at $501/mt CFR for HMS I/II 80:20, today two new scrap deals have been disclosed to the import scrap market in Turkey.
SteelOrbis has learned that an ex-UK full shredded scrap cargo was bought by an Izmir-based Turkish producer at $521/mt CFR, for July shipment. The premium between shredded and HMS I/II 80:20 scrap being $20/mt, the benchmark HMS I/II 80:20 scrap quotation is at $501/mt CFR, similar to the level recorded in yesterday’s Baltic deal and it is higher than the expectations at $495-500/mt CFR for ex-EU HMS I/II 80:20 scrap.
Meanwhile, a Marmara-based mill concluded an ex-St. Petersburg booking yesterday, June 8, for HMS I/II 80:20 scrap at $498/mt CFR and bonus grade scrap at $508/mt CFR, for July shipment. With this deal, SteelOrbis’ prices for ex-Baltic cargoes are now at $498-501/mt CFR, instead of the $501/mt CFR reported in yesterday’s ex-Estonia deal.
Under the current circumstances, one can say that HMS I/II 80:20 scrap prices from the EU and Baltic region have closed the gap with ex-UK scrap prices which have been standing firm for some time now. The market mostly believes that these levels observed in recent deals represent the bottom and is waiting for the next ex-US transaction. The local Turkish rebar market is still slow in terms of demand, though traders believe that the local rebar quotations of Turkish mills have also hit the bottom with Kardemir’s sales opened and closed yesterday after the producer received demand for around 47,000-50,000 mt of rebar at $685/mt.
