Two new deep sea scrap deals have been disclosed in the Turkish market, while deals have been closed from the EU and the Baltic region to Turkey at similar levels.
An İskenderun-based Turkish mill has concluded an ex-Belgium booking for a cargo consisting of 15,000 mt of HMS I/II 75:25 scrap, 10,000 mt of shredded scrap, 5,000 mt of busheling scrap and 10,000 mt of P&S grade scrap at the average level of $453/mt CFR, for April shipment. According to this information, the benchmark HMS I/II 80:20 scrap price from Belgium is now at around $448/mt CFR. Before the deal in question, ex-EU HMS I/II 80:20 scrap was estimated to be in the range of $435-440/mt CFR Turkey.
Additionally, another deal from Kaliningrad in Russia’s Baltic region has reportedly been concluded by another İskenderun-based producer for HMS I/II 80:20 scrap at $449/mt CFR. Some market players state that the price is at $450/mt CFR. This deal was not confirmed by the buyer or the seller at the time of publication but is widely believed to have been done. Prior to this deal, ex-Baltic HMS I/II 80:20 scrap quotations were at $445/mt CFR Turkey.
Turning to the short sea segment, market sources report that levels higher than $430/mt CFR are currently considered workable for Romanian and Adriatic origin HMS I/II 80:20 scrap as deep sea scrap prices have been moving up.
According to a major European scrap supplier, collection costs are rising in the region as well as the freight costs, while demand from Turkey is very lively. Also, a Baltic region-based supplier stated that problems in terms of shipments are felt more in the Baltic region and that fluctuating freight costs are now higher. As SteelOrbis mentioned before, expectations for the local US scrap market in the March purchase cycle are upward. Meanwhile, it is known that Turkey has only bought four to five deep sea scrap cargoes for March shipment, which means there is need for another thirty-thirty five cargoes in the coming round of purchases. Additionally, commodity prices are also moving up, while the Chinese steel market is firm. As a result, market sources believe that scrap price levels of around $450/mt CFR will quickly gain acceptance as prices are already close to these levels. Also, some believe deep sea prime grade scrap quotations may reach $480-485/mt CFR Turkey in the coming round of purchases, while some believe higher levels are also possible.