After a long period of silence, an ex-Baltic deal has been disclosed to the market today, February 23, with HMS I/II 80:20 scrap prices higher than the last ex-US transaction.
SteelOrbis has learned that an Iskenderun-based producer has concluded the deal for 20,000 mt of HMS I/II 80:20 scrap at $445/mt CFR and 5,000 mt of bonus grade scrap at $455/mt CFR. The cargo will be shipped in the first half of April. Previous to this deal estimations for ex-Baltic prime grade were at $430-435/mt CFR, though the latest deep sea HMS I/II 80:20 scrap purchase was done from the US at $435/mt CFR Turkey.
As of today, ex-US scrap offers are at around $455/mt CFR, according to market sources. However, the ongoing problem about finding available ships is causing some suppliers to stay away from the market. Ships stuck in the ports due to the snowstorms in the US are making it hard to create a sustainable offer amid the volatility of freight. A similar situation is voiced by some European suppliers, who agree that freight is volatile. Meanwhile, demand received from Turkish mills is good, according to market players. As Turkey will need a lot of cargoes for April shipments, prices are expected to move up further in the coming period. SteelOrbis understands that Turkish mills are receiving demand from the export markets, and some tonnages have already been sold to Brazil, Latin America and Canada. This development supports the mood in the market as well as the accelerated sales in the local market, some report construction sites are back in the market as rebar buyers since the impact of the cold weather is gradually disappearing in some regions of Turkey.