With a new ex-Baltic deal disclosed in Turkey’s import market, ex-Baltic prime grade scrap prices have slightly decreased.
SteelOrbis has learned that the deal in question was done by a Marmara-based mill for HMS I/II 80:20 scrap at $495/mt CFR and bonus grade scrap at $520/mt CFR. Prior to this deal, SteelOrbis’ daily prices for Baltic origin HMS I/II 80:20 scrap were in the range of $495-498/mt CFR, and so prices have indicated a slight decrease on the upper end.
While Turkish mills are in no rush to conclude new deep sea bookings as they are unable to export large tonnages of finished steel, SteelOrbis observes that sellers are not being aggressive in their offers to Turkey. Ex-Baltic HMS I/II 80:20 scrap offers are at around $495/mt CFR Turkey, while European offers for the same grade are at around $493/mt CFR Turkey. SteelOrbis has also heard that a US-based seller is offering a cargo to Turkey in the range of $495-500/mt CFR Turkey. No deals have been concluded at these levels yet. Despite the slight softening in offers, one Turkish producer stated, “No strong fall in prices is expected under the current circumstances.” Scrap flow is not very strong in the US or in the EU, and so collection prices are not decreasing. “There is significant congestion at US ports,” another source stated. “Some sellers are asking for an extension of delivery periods for their previous deals done at lower price levels in the deep sea scrap segment, which is also a problem for Turkish mills,” a source reported.
Additionally, an ex-Romania cargo was bought by a Marmara-based mill at $465/mt CFR for HMS I/II 80:20 scrap, which is lower than last week’s prices in the range of $470-475/mt CFR. However, the disruption of shipments in the short sea scrap segment continues, SteelOrbis understands.