Following scrap price levels heard at the end of last week, indicating a wide range, another ex-Europe deal to Turkey has been disclosed to the market, making it easier for players to see a clearer trend.
Accordingly, a Marmara-based Turkish steelmaker has concluded an ex-Netherlands transaction for 20,000 mt of HMS I/II 80:20 scrap at $395/mt CFR and 7,500 mt of bonus grade scrap at $405/mt CFR, for the first half of March. The previous deals from the UK were both heard on Friday, February 5, at $399/mt CFR and $386.5/mt CFR for the benchmark HMS I/II 80:20 scrap.
SteelOrbis has also learned that an Iskenderun-based producer has concluded a deal from Venezuela for 22,000-25,000 mt of HMS I/II 80:20 scrap at $393/mt CFR Turkey. The cargo will be shipped in the March 15-31 period, though the price level is not considered to be indicative for the market price due to the unusual nature of the cargo.
The general opinion in the market is that the trend of the deep sea scrap segment is now clearer and is from sideways to upwards. Today, February 10, US suppliers are voicing offers for HMS I/II 80:20 scrap at $410-415/mt CFR Turkey, though some state that it is too early for mills to accept these levels. Turning to Europe, suppliers’ offers for the same grade are similarly rising and are currently at around $400/mt CFR Turkey. Turkey still needs at least ten cargoes for March shipment, according to market sources, while others think that the number is higher. All market players are monitoring the developments in China closely and believe its return from its long holiday on February 12-17 will be a determining factor for the trend of the global scrap market in the medium term.