Import scrap prices in Turkey started to move down earlier this week due to the high number of sellers in the market seeking opportunities to conclude new sales, while buyers were remaining quiet. Against this backdrop, some new ex-St. Petersburg deals have now been disclosed to the market with HMS I/II 80:20 scrap bought at lower price levels.
SteelOrbis has learned that a Marmara-based mill has concluded a booking from St. Petersburg for HMS I/II 80:20 scrap at $437/mt CFR and bonus grade scrap at $447/mt CFR. The cargo will be shipped in the first half of May.
Meanwhile, there is another rumor of an Marmara-based mill buying a cargo from St. Petersburg, indicating the same price levels for benchmark HMS I/II 80:20 scrap, though this deal has not been confirmed by the buyer or the seller at the time of publication. Additionally, according to some sources, this cargo was sold under special circumstances and, accordingly, sources are unsure about it. On the other hand, some sources state that price of the deal is at higher levels for benchmark grade. Prior to this new information, SteelOrbis’ estimation for ex-Baltic HMS I/II 80:20 scrap was at $453-460/mt CFR Turkey.
Meanwhile, the price of short sea HMS I/II 80:20 scrap from Romania and the Adriatic region has declined to $415-420/mt CFR Turkey, from the level of $430-435/mt CFR.
The sharp decrease recorded in the import scrap price is the result of sellers’ willingness to conclude sales to Turkey amid their fears of a further decrease in prices and due to the lack of buyers in alternative markets. Some market players state that, if a high number of deep sea scrap offers remains in the market, mills will continue to stay away and will exert further pressure on quotations. The main question remains the willingness of sellers, particularly those in the US, to cut their prices for Turkey.