After a quiet start to the current week, European scrap quotations have moved down rapidly with an ex-UK scrap transaction.
SteelOrbis has learned that an ex-UK deal has been concluded by an Izmir-based producer for 9,500 mt of HMS I/II 80:20 scrap at $408/mt CFR and 14,000 mt of shredded scrap for $419/mt CFR, for February shipment. Before the deal in question, SteelOrbis’ reference prices for ex-EU HMS I/II 80:20 scrap were at $435/mt CFR.
These levels for ex-UK HMS I/II 80:20 scrap indicates a $415-420/mt CFR range for ex-US and ex-Baltic benchmark grade, according to market sources. Some state that this is higher than their initial expectations amid Turkish mills’ firm stance, while some believe this fast decreasing trend may mean prices are bottoming at lower levels, adding that the sharp decrease in prices may led mills to exert more pressure on deep sea scrap quotations in the coming period. It is known that Turkey has concluded some deep sea scrap bookings for March shipments, approximately 10-15 cargoes in total considering the purchases done in December, while steelmakers’ need for March shipments continue. One market source states that Turkish mills have some margin to wait before starting a new purchasing round with full strength, and when the waiting is done prices can rebound gradually again.
Meanwhile, Kardemir has sold a total of 43,000 mt of billet today, January 26, at the level of TRY 4,330/mt ($584/mt) ex-works for S235JR grade, excluding VAT. Demand in the local Turkish rebar market is quiet, while the Chinese New Year holiday is creating an uncertainty for the Far East market where Turkey is considering a good export market for some time now.