Several deep sea scrap deals have been disclosed to the market today, November 15, mostly closed at the end of last week.
A Marmara based producer concluded a transaction at the end of last week for ex-US HMS I/II 80:20 scrap at $500/mt CFR and shredded scrap at $520/mt CFR. This price is similar to the previous ex-US booking, hence ex-US scrap quotations have remained firm.
SteelOrbis has learned that another Marmara-based mill has concluded two deals, one from the Baltic region, while the other one is from the UK. The ex-UK cargo has been closed at $490/mt CFR for the benchmark HMS I/II 80:20 scrap, $3/mt lower than the previous SteelOrbis’ range. No further detail has been shared about this cargo at the time of publication.
The ex-St. Petersburg booking was closed at $494.5/mt CFR Turkey for benchmark grade, the price is $4/mt lower than the previous ex-Baltic quotation. The cargo is prompt shipment. The softer ex-St. Petersburg price was the result of this position as well as Russia’s plan to initiate a higher duty for scrap exports as of January 2022. SteelOrbis hears that the suppliers in the region are trying to conclude their contracts to avoid the higher duty.
As Turkish mills are closer to complete their deep sea scrap purchases for December shipments, “the balance in the market is not yet broken,” a source comments. “There are some mills that are seeking cargoes for January shipments, and prices voiced are around $500-505/mt CFR by sellers,” the player comments.
Meanwhile, the current week started with a pessimistic cautious stance as Turkish lira-US dollar Exchange rate has hit and passed the historical threshold of TRY 10 to a dollar. In the local Turkish rebar market, traders are taking their time before concluding new purchases ahead of Turkish Central Bank’s interest rate decision due on Thursday, November 18. On the other hand, traders’ inventory levels are on the low side, leading mills to maintain their rebar prices at around $750/mt ex-works due to their expectations of another round of restocking from traders.
