An ex-Denmark deal to Turkey was closed on August 3 signaling a higher price for benchmark HMS I/II 80:20 scrap.
SteelOrbis has learned that the transaction was concluded by a Black Sea-based Turkish steel producer for a cargo consisting of 17,000 mt of HMS I/II 80:20 scrap, 9,000 mt of shredded scrap and 2,000 mt of bonus grade scrap at the average level of $471.5/mt CFR. The cargo will be shipped in the first half of September, while the estimated price of HMS I/II 80:20 scrap in the cargo is at $466-466.5/mt CFR Turkey. Meanwhile, the previous deal reported last week from Denmark for HMS I/II 80:20 scrap at $461/mt CFR has been confirmed to have actually been from Germany.
Additionally, an Izmir-based Turkish mill has reportedly bought an ex-Venezuela cargo with 25,000 mt of HMS I/II 80:20 scrap standing at $460/mt CFR Turkey.
A Baltic-based seller stated that a $5-10/mt decrease is still possible for deep sea benchmark scrap prices in the next bookings to be done this week, though ex-Baltic cargoes have little room to move down as it is becoming difficult for sellers and buyers to agree on prices. Some sellers are reportedly selling cargoes at breakeven prices, the source added, as they aim to keep shifting inventories even though profits are lower as compared to the past. While many market players believe that at least 250,000 mt of Turkish steel (including profiles, billets and rebars) changed hands last week, this number is still lower than the traditional tonnages. The finished steel sales, done particularly in the local Turkish rebar market, were supported by the movement of the Turkish lira-US dollar exchange rate. Some traders reported that even the materials bought at higher levels could have been sold with a profit at lower price levels amid the depreciation of the Turkish lira. Several traders in the domestic rebar market stated that they are not expecting any further decrease in prices, supporting the idea in the scrap market that scrap prices are very close to the bottom. Having said that, some players have stated that, even if deep sea scrap prices bottom out, they will need backing from the finished steel segment in order to start moving up.