A new ex-Belgium scrap booking to Turkey done today, April 21, has pushed deep sea prime scrap prices up above $430/mt CFR Turkey.
The deal in question was done by an Iskenderun-based mill for 22,500 mt of HMS I/II 80:20 scrap and 12,500 mt of a mixture of P&S and HMS I grade scrap at the overall average price of $429/mt CFR, for early June shipment. The HMS I/II 80:20 benchmark grade price is estimated to be at $425.5/mt CFR. Prior to this booking, SteelOrbis’ prices for ex-EU HMS I/II 80:20 scrap were in the range of $416-420/mt CFR.
Meanwhile, another slightly older ex-Netherlands deal has been disclosed to the market today. The transaction was done by a Marmara-based producer last week for 16,000 mt of HMS I/II 80:20 scrap at $413/mt CFR, 2,500 mt of shredded scrap at $418/mt CFR, and 8,500 mt of bonus grade scrap at $423/mt CFR, for late May shipment.
Additionally, there is a rumor of an ex-US scrap deal concluded last week by another Iskenderun-based steelmaker, with HMS I/II 80:20 scrap priced at $420/mt CFR. Some market players state that the price of the benchmark grade in this cargo is $425/mt CFR. This information has not been confirmed by the buyer or the seller by the time of publication.
On the short sea side, the current week has been quiet in terms of trading but market players believe that levels of $388-390/mt CFR Turkey are workable for HMS I/II 80:20 scrap from Romania and the Adriatic region. One producer from Turkey’s Bartin region stated that their expectation for this grade is lower, in the range of $370-390/mt CFR, depending on the origin of the short sea HMS I/II 80:20 scrap. Also, suppliers trading from Cyprus and Israel believe that the workable level for HMS I/II 75:25 is in the range of $375-380/mt CIF Iskenderun, though they add that buyers have been quiet this week.
With the ex-Belgium deal reported above, ex-EU scrap quotations have increased to $420-425.5/mt CFR Turkey, while ex-US prime grade scrap prices are now estimated at $430/mt CFR and above. The collection prices at export scrap yards in the US have increased as previously reported by SteelOrbis. In addition, two major European scrap suppliers state that collection prices have also moved up in their region in past weeks, with one adding that this rise in collection costs will impact on export offers in the coming period. In some regions of Europe, prime grade scrap flow is very slow and it has become hard to find some grades. All suppliers state that there is scrap demand from other regions such as Latin America, Egypt, South Korea, Vietnam and South America, while some even state that firm bids from these regions are more attractive than those coming from Turkey. SteelOrbis observes that market players are more positive about the future trend of the import scrap market in Turkey, with most believing that prices have already hit bottom. Meanwhile, some steel export sales from Turkey have been heard to Canada and the Far East lately.