Having reported $444/mt CFR earlier today for ex-Baltic HMS I/II 80:20 scrap, SteelOrbis has learned that another ex-Baltic deal has been closed at higher levels.
A Black Sea-based steelmaker has concluded an ex-Finland transaction for 13,500 mt of HMS I/II 80:20 scrap at $450/mt CFR, 14,000 mt of shredded scrap at $460/mt CFR, 3,000 mt of bonus grade scrap at $460/mt CFR and 2,000 mt of busheling scrap at $470/mt CFR, for late February shipment. This level is signaling a $6/mt increase as compared to the abovementioned St. Petersburg booking.
With Baltic originated prime grade scrap hitting $450/mt CFR, the expectations for the US side are now higher than $450/mt CFR, some say. While this sharp uptrend is causing concerns amongst market players, some state that the margins from the previous commitments of the suppliers that were fixed at lower price levels have narrowed amid higher collection costs. Meanwhile, trading activities in the local Turkish rebar market is sluggish. Some players state that the market has dissociated from the global trend. Additionally, the Turkish lira is gaining strength against the US dollar as a result of the policies followed by Turkey’s new economy leadership, which causes players to maintain a wait-and-see stance ahead of the Turkish Central Bank’s interest rate announcement on December 24.