Following SteelOrbis’ report earlier today, April 7, of three deep sea scrap deals to Turkey all indicating an increase for benchmark HMS I/II 80:20 scrap, another transaction - from Europe this time - has been disclosed to the market.
SteelOrbis has learned that an Izmir-based Turkish producer has concluded the booking from Belgium for 20,000 mt of HMS I/II 80:20 scrap, 11,000 mt of shredded scrap, 8,000 mt of P&S grade scrap and 2,000 mt of busheling scrap at the average level of $433/mt CFR Turkey. This cargo will be shipped in the second half of May. This information indicates $429/mt CFR for the benchmark grade, while some market players state that, if a premium is paid for the shredded scrap, then the HMS I/II 80:20 scrap prices will be considered to be in the range of $426.5-427.5/mt CFR. Prior to this booking, SteelOrbis’ forecast for European HMS I/II 80:20 scrap was in the range of $421-425/mt CFR, while $421/mt was fixed in the most recent ex-Germany deal last week.
Additionally, there is rumor about another deal, again from Europe, with the average price level at $426.5/mt CFR Iskenderun. No further detail about this cargo has been disclosed to the market at the time of publication and some market sources think that this transaction was closed on Monday, April 5.
As a result, SteelOrbis’ daily prices for ex-Europe benchmark scrap has increased to $426-429/mt CFR Turkey, while the rise recorded in European scrap prices is now more similar to the margin observed in prices from the US and Baltic.
Meanwhile, one market player stated that the wider-than-usual gap between short sea and deep sea prices is set to return to normal levels. SteelOrbis has learned that the workable levels for short sea origin HMS I/II 80:20 scrap from Romania and the Adriatic region are currently at around $410/mt CFR Turkey. The profit margins of suppliers are low, according to market sources, and sellers are aiming for higher levels such as $420/mt CFR Turkey. Additionally, Cypriot and Israeli suppliers are targeting levels of $405/mt CIF Iskenderun for HMS I/II 75:25, market sources state, though this level has not yet been fixed in deals.