Another ex-US scrap booking has been done to Turkey and the price has increased slightly, proving that suppliers are standing firm on their quotations as they aim for higher levels.
SteelOrbis has learned that an Iskenderun-based producer has concluded the deal for HMS I/II 90:10 scrap at $415.5/mt CFR, signaling approximately $413/mt CFR for HMS I/II 80:20 scrap. No further details regarding this deal have been disclosed at the time of publication. Previous ex-US deals were closed at around $410/mt CFR.
Higher scrap grades in the compositions of recent ex-US deals are attracting attention, causing some market sources to expect another round of bookings from the US with HMS I/II 80:20 scrap in the cargoes. Several sellers have voiced their expectations of higher levels in the coming round, with levels around the $420s/mt CFR targeting. The euro-US dollar exchange rate has had a positive impact on European scrap offers, which are standing strong with the support of domestic demand in the region. The first target for ex-EU HMS I/II 80:20 scrap is $410/mt CFR and above, SteelOrbis understands. As a result, ex-Baltic HMS I/II 80:20 scrap prices are estimated to be at $410-415/mt CFR. It should be added that Kardemir opened its domestic billet prices earlier today, January 26, at $620/mt ex-works, and closed its sales after a couple of hours after selling at least 30,000 mt of billets.
While there is no new confirmed deal in the short sea scrap market, workable levels are in the range of $385-390/mt CFR, up from $380-385/mt CFR Turkey.