A new ex-US deal has been disclosed in Turkey’s import scrap market, indicating a small decline in prices.
SteelOrbis has learned that the cargo was bought by an Izmir-based producer for HMS I/II 80:20 scrap at $339.5/mt CFR, with shredded and bonus grades standing at $354.5/mt CFR. There are rumors that this booking was closed at a slightly lower level of $337/mt CFR. The parties involved made no comments on the deal, but the higher level is largely believed to be the price for HMS I/II 80:20 scrap. Prior to this transaction, ex-US HMS I/II 80:20 scrap quotations were at $343/mt CFR.
Another ex-US scrap booking has been done by a Marmara-based producer, with HMS I/II 80:20 scrap standing at $339.5/mt CFR. Further details regarding this deal have not been shared by the time of publication.
Several market players think that benchmark HMS I/II 80:20 scrap quotations are close to hitting the bottom. The number of offers received by Turkish mills are on the low side, while some players state that it is becoming difficult to find a cargo for December shipment. A seller stated, “It is unlikely to go below $335/mt CFR in the short term.” According to a US-based source, the collection prices in the country may allow sellers to reduce their prices to $337s/mt CFR Turkey. The situation in the EU is different. Collection prices are not falling in the region, remaining at €280-300/mt DAP Amsterdam, while on rare occasions €270s/mt are also heard. “Most exporters here believe that the year has ended already. They are not planning to sell much in the rest of 2022. We will all plan for 2023,” a sub-collector reported. As a result, European scrap prices are unlikely to follow the lead given by the US and to drop drastically.
Meanwhile, a Romanian Deal has been closed this week at $315/mt CFR. Some mills are seeking $305-310/mt CFR and the downward pressure on the short sea scrap segment continues, though sellers are resisting the bids for now.
