An ex-UK booking has changed the mood in Turkey’s import scrap market, boosting sentiment.
SteelOrbis has learned that the deal in question was concluded by an Izmir-based Turkish producer for HMS I/II 80:20 scrap at $505/mt CFR and shredded scrap at $525/mt CFR. The time of delivery and other details have not been disclosed and neither of the parties have confirmed the deal by the time of publication, though it is largely believed to have been done. According to some market players, the shredded quotation in the cargo may be at $520/mt CFR. Following the ex-US scrap deal closed at $502/mt CFR on May 28, SteelOrbis had revised its price estimations for ex-EU scrap to the range of $490-495/mt CFR.
The ex-UK deal in question is considered to be a positive signal for the deep sea scrap market. Market players have been concerned that prices would move down after the level of $502/mt CFR Turkey as Turkish mills are still in no rush to conclude new bookings. The possibility of lower prices either from the US or Baltic sellers was being voiced as a risk in the market before the ex-UK sale, though European sellers were keeping their prices firm. Amid higher ex-EU scrap prices, market players expect other regions to return to their offer levels seen prior to the ex-US deal on May 28. SteelOrbis believes that another deep sea scrap deal would first need to be recorded to see what price level will be more dominant.
