With a new deal from the UK, European deep sea scrap prices have softened slightly.
SteelOrbis has learned that a Marmara-based mill has concluded an ex-UK for 20,000 mt of HMS I/II 80:20 scrap at $488/mt CFR, 5,000 mt of shredded scrap at $507/mt CFR. The cargo will be shipped in the second half of December. Previous to this deal, ex-UK HMS I/II 80:20 scrap was sold at $490/mt CFR fixed in deal.
Market players state that collection prices in Europe, particularly from Germany to Netherlands, are at around €370/mt. With the additional costs of local shipment, profit and freight, CFR Turkey prices shall remain above $485/mt. “It is impossible for sellers to accept lower than these levels for European scrap,” a source stated. Offers from the deep sea segment has increased in numbers, a couple of sources admit, while demand from Turkish mills is still not great. Turkish mills’ appetite is negative impacted by the Turkish lira-US dollar exchange rate, some comment.
On the other hand, a European source states that the first reaction to European Commission’s proposition of tighter rules for waste shipments. “EU-based mills are upset since scrap is still considered a waste in the EC’s draft, they are considering it to be a secondary raw material and admit that they cannot use the material that’s traditionally going to Turkey,” the source added.