Following the ex-Netherlands booking disclosed to the market yesterday, December 15, two new ex-Europe cargoes have pushed up prices slightly.
SteelOrbis has learned that a Spanish supplier has sold a cargo to Turkey’s Bartin region for 7,500 mt of bonus grade scrap at $439/mt CFR and 4,500 mt of busheling scrap at $450/mt CFR. Based on this deal, the benchmark HMS I/II 80:20 scrap price is estimated to be at around $429/mt CFR, which is $8/mt higher than yesterday’s levels realized in the ex-Netherlands transaction. Also, another ex-EU deal is believed to have been closed by an Izmir-based producer at $422.5/mt CFR for HMS I/II 80:20 scrap before the deal for the Spanish cargo, for February shipment, but this information has not been confirmed by the buyer or the seller at the time of publication.
On the other hand, an ex-St. Petersburg deal is widely discussed in Turkey’s import scrap market today, signaling a level of $435/mt CFR Iskenderun for 25,000 mt of HMS I/II 80:20 scrap and $445/mt CFR Iskenderun for 5,000 mt of bonus grade scrap, though the seller and the buyer have made no comment on this booking.
Sentiment in Turkey’s import scrap market continues to remain strong. The main reason is still the lack of scrap, and also the fact that the UK and Ireland are also planning some regional lockdowns in the coming days. SteelOrbis has previously reported that Germany and Netherlands have taken steps to reduce the impact of the second wave of the Covid-19 virus. However, the local Turkish rebar market is sluggish, market players state, which causes concern among local traders. One trader stated that only government investments are continuing, while the activities of property developers have almost come to a stop. The recent sharp rises observed in prime grade scrap prices have started to cause some concern amongst market players.