Several deep sea deals have been disclosed in Turkey’s import scrap market today, September 7, with prices at lower levels in some of the deals.
SteelOrbis has been informed that an ex-UK booking was done by an Izmir-based Turkish steel producer for a cargo consisting of 32,000 mt of HMS I/II 80:20 scrap and 10,000 mt of shredded scrap at the average price level of $449/mt CFR, for October shipment. According to the information on hand, the HMS I/II 80:20 scrap price in the deal is estimated at around $445-446/mt CFR Turkey, which is higher than the previous ex-German deal closed at $442/mt CFR.
Another ex-EU deal was reportedly done from Germany by a Marmara-based producer with HMS I/II 80:20 scrap at $437/mt CFR and bonus grade scrap at $452/mt CFR. No further details have been disclosed in the market by the time of publication, while this deal is widely believed to have in fact been done. Also, there is a rumor of an ex-Netherlands cargo sold to an Iskenderun-based steelmaker with HMS I/II 80:20 scrap standing at $435/mt CFR. This deal has not been confirmed by the buyer or seller at the time of publication. Following the ex-Baltic deals recorded at the end of last week, SteelOrbis’ estimation for European HMS I/II 80:20 scrap was revised to the range of $439-444/mt CFR.
In addition to the cargoes from the EU, an ex-US deal has been shared by market players, rumored to have been done by a Marmara-based mill for HMS I/II 80:20 scrap at $446/mt CFR and shredded scrap at $461/mt CFR.
As can be observed in the European deals, the HMS I/II 80:20 scrap prices are in a wide range. This also shows the various expectations voiced by sellers from the region, while it was already known that some sellers had positions ready at docks. A German source stated late yesterday that the decrease of approximately €40/mt recorded in the local German scrap market was higher than expectations and may exert pressure on export quotations. However, the new scrap prices have not moved down so sharply, but only by €10-15/mt due to the lack of supply. Since some sellers kept tonnages in hand in August instead of selling them - approximately 30 percent of total collection as one source stated - they may now prefer to sell to maintain cash flow despite high collection costs. Meanwhile, SteelOrbis has learned that German scrap is now at €310/mt delivered to Amsterdam, while collection costs before the cutting process in Germany are at around €260-270/mt, according to sources.