Deep sea prime grade scrap prices are softening amid the unwillingness of Turkish mills to rush to conclude deals.
SteelOrbis has learned that an Iskenderun-based producer has concluded the ex-Netherlands booking in question for HMS I/II 80:20 scrap at $487/mt CFR, bonus grade scrap at $507/mt CFR and shredded scrap at $510/mt CFR. The cargo will be shipped in the first half of January. Prior to this deal, European benchmark HMS I/II 80:20 scrap prices were in the range of $488-490/mt CFR Turkey in deals, and so prices have decreased by $2/mt on average.
In the transaction above, the price difference between shredded and HMS I/II 80:20 scrap is $23/mt, and this is the second deal in the deep sea segment that signals a higher premium. Yesterday, SteelOrbis reported another booking from the Baltic region with a $25/mt difference between HMS I/II 80:20 scrap and bonus grade scrap. This price gap has been an issue in Turkey’s import scrap market for some time now, while the scarcity of shredded and higher grades may have finally caused premiums to be increased by mills.
Another important issue that attracts attention in the market is Turkish mills’ recent deals for billet imports, in particular for stressed cargoes redirected from China at lower prices. However, Southeast Asia is feeling the impact of these cargoes also and tonnages are actively going to that region too. Accordingly, for now, import billet tonnages are not expected to reach levels that would eventually put pressure on deep sea scrap quotations in Turkey.