There are new deep sea deals disclosed to the market today, June 1, indicating an almost sideways movement regarding prices.
SteelOrbis has been informed that an ex-Baltic transaction was made by a Marmara-based mill at the end of last week for 19,000 mt of HMS I/II 80:20 scrap at $252.5/mt CFR and 4,000 mt of bonus grade scrap at $262.5/mt CFR, for late June shipment. The previous ex-Baltic deal was closed at $253/mt CFR for early July shipment.
Also SteelOrbis has heard that there is another ex-Belgium deal made by the same producer for 22,000 mt of HMS I/II 75:25 at $245/mt CFR, 8,000 mt of shredded scrap at $262/mt CFR and $10,000 mt of a mixture of P&S and HMS I scrap at $264/mt CFR. The total tonnage of the cargo is 40,000 mt, for June shipment, while the HMS I/II 80:20 quotation regarding this deal is estimated to be at $250/mt CFR. The previous European booking made in Turkey was closed at $252.5/mt for this grade from the UK.
Turkish mills, which already are facing an AD investigation by the EU and may face a countervailing duty (CVD) one shortly, are expected to be hit the hardest by the renewed quota system which is now country-specific based for hot rolled coil (HRC) imports. This was the main topic in the market today. While the new quota system will surely impact on Turkish producers’ capability to sell HRC to the European region, market sources do not expect a rapid blow in the short term.