In an older scrap deal which has been disclosed to the market, prices have not changed for Europe origin HMS I/II 80:20 scrap.
A Marmara-based producer concluded the ex-EU booking at the beginning of the current week, for HMS I/II 75:25 scrap at $486/mt CFR and bonus grade scrap at $506/mt CFR. In light of the information on hand, the HMS I/II 80:20 scrap price is estimated to be at around $490/mt CFR. Prior to this deal, ex-EU HMS I/II 80:20 prices were in the range of $488-490/mt CFR.
Despite the decreases recorded in the European segment, a major supplier stated, “The underlying fundamentals remain intact.” Supply availability on the both sides of the Atlantic is still problematic, while scrap flow to yards is also impacted by the colder weather conditions and is slowing down. On the other hand, with the number of offers increasing both in the short sea and deep sea scrap segments, it is safe to say that some sellers are willing to sell at slightly lower prices as Turkish mills are showing little interest in bookings. As Turkish mills are not managing to export finished steel in significant tonnages, there is still pressure on scrap prices.
On the short sea side, the workable level is once again considered to be in the range of $470-475/mt CFR, while the $5/mt increase observed earlier this week is now gone. While both buyers and sellers in the short sea scrap segment are silent, one supplier stated that winter conditions have started to impact scrap flow.