An ex-US scrap booking has been disclosed to the Turkish market today, November 7, though it was done towards the end of the last week. The price of benchmark HMS I/II 80:20 scrap based on the deal is stable.
SteelOrbis has learned that an ex-US deal was closed by an Izmir-based producer for HMS I/II 80:20 scrap at $350/mt CFR, with shredded and bonus grade scrap at $365/mt CFR. The cargo is believed to be for shipment in December. Prior to this one, SteelOrbis’ reference prices for ex-US HMS I/II 80:20 scrap was in the range of $348-350/mt CFR.
There are no deep sea scrap offers in the market for November shipments. Some market players think that deep see scrap prices may remain firm, while other believe the downward pressure on prices will build up amid the lack of steel demand, which will eventually cause Turkish mills to cut production rates further. However, the collection prices in Amsterdam are still at €300/mt DAP, and sub-collectors inform SteelOrbis that they are only meeting their commitments resulting from previous contracts, while they are not trying to find new opportunities to sell ahead of the New Year. A European supplier also noted, “The Turkish buyers do not have much appetite. Some only close deals so that they won’t be forced to halt production.” As a result, the sentiment in Turkey’s import scrap market is pessimistic.
Short sea scrap prices have remained stable at $330-335/mt CFR. SteelOrbis observes that the number of offers is on the low side. A Bulgarian supplier commented that $320s/mt CFR would be a success nowadays for Bulgarian HMS I/II 80:20 and Turkish mills’ idea for this grade is much lower.
