Despite the fall observed in the Baltic scrap segment last week, US origin scrap prices held their position and resisted the downward pressure exerted by Turkish mills.
SteelOrbis has learned that an ex-US deal was closed by an Izmir-based producer at the end of last week for HMS I/II 80:20 scrap at $410/mt CFR, with bonus and shredded scrap at $430/mt CFR. The cargo will be shipped in February. Prior to this deal, SteelOrbis’ estimations for ex-US HMS I/II 80:20 scrap was at $405-410/mt CFR.
As mentioned last week, the thought of lower prices has caused sellers to take a step back this time. Domestic demand in the supplier regions is good, while some recovery has already been seen in finished steel prices. Collection prices are not declining, preventing suppliers from being aggressive or in a rush to conclude new sales. The appreciating euro is also supporting the offers from the EU, while US suppliers are now aiming for levels around $415/mt CFR. Additionally, SteelOrbis hears that inquiries made by Turkish mills are accelerating. Turkish producers’ deep sea scrap contracts for February shipment have not been completed, and there is a long way to go to complete bookings for March shipments. Sentiment in Turkey’s import scrap market remains strong, though the finished steel segment is being monitored closely. As of today, January 23, Turkish mills’ official rebar prices for their domestic market have mostly declined to $710/mt ex-works, while the upper end last week in the $730s/mt ex-work is now gone.
