Two new deep sea scrap deals in Turkey have supported the positive sentiment in the scrap market.
SteelOrbis has learned that an Iskenderun-based Turkish producer has concluded an ex-Baltic deal for 16,000 mt of HMS I/II 80:20 scrap, 8,500 mt of shredded scrap, 4,500 mt of bonus grade scrap, 3,500 mt of rail scrap and 2,500 mt of busheling scrap at the average price level of $436/mt CFR. This information indicates that the HMS I/II 80:20 scrap price is at $430-431/mt CFR Turkey, which is higher than the $422-425/mt CFR range estimated after the ex-Murmansk deal disclosed to the market yesterday.
Additionally, an ex-US scrap transaction has been concluded by a mill in Turkey’s Black Sea region. The cargo in question consists of 13,000 mt of HMS I/II 80:20 scrap, 15,000 mt of shredded scrap and 3,000 mt of bonus grade scrap at the average price level of $439/mt CFR. This cargo will be shipped in the second half of May. According to this information, the HMS I/II 80:20 scrap price is estimated at around $436/mt CFR Turkey. Prior to this deal, SteelOrbis’ forecast for ex-US benchmark scrap was in the range of $425-430/mt CFR.
Also, another ex-US scrap cargo is rumored to have been bought by a Marmara-based mill, with HMS I/II 80:20 scrap priced at $433/mt CFR Turkey, though this deal has not been confirmed by the buyer or the seller at the time of publication.
SteelOrbis reported yesterday, April 6, that Baltic region-based scrap suppliers were seeking $430/mt for HMS I/II 80:20 scrap and this level has been achieved today. Market players are closely monitoring the sales of rebar and wire rod which Turkish mill Kardemir opened earlier today.