According to market sources, fresh scrap deals from the UK with two different mills in Turkey’s Marmara and Iskenderun regions have been closed at much lower levels, with prices dropping below $230/mt CFR, a level last seen in January 2017. Both deals, including 37,000 mt of HMS I/II 80:20 scrap in total, have been closed at $228/mt CFR, SteelOrbis has been informed. Thus, import scrap prices ex-EU have decreased by $9/mt compared to last deal from Europe, concluded on September 13.
Earlier this week European suppliers have already been offering at lower level, but deals have been signed with some additional discounts. A scrap supplier from the EU has been offering a cargo which includes 23,000 mt of HMS I/II 75:25, 5,000 mt of shredded and 12,000 mt of HMS I at the average price of $230/mt CFR. Although this cargo does not include HMS I/II 80:20 scrap, based on this offer the price for this grade has been assessed by a number of market participants at $229.25/mt CFR.
Baltic scrap suppliers have been preparing to give offers to Turkey for HMS I/II 80:20 scrap at $235/mt CFR. But Turkish steel mills generally have been giving firm bids at $225/mt CFR for ex-Baltic and ex-EU scrap. This means that Turkish steel mills’ firm bid level has decreased by $5/mt compared to the beginning of this week, SteelOrbis has been informed.
At the same time, US scrap suppliers have been very quiet this week. According to market sources, US domestic scrap prices are expected to decline in October following the fall recorded in September. Moreover, offer volumes for sale in the export market will be higher in October. Ex-US HMS I/II 80:20 scrap has been assessed at $230-235/mt CFR.
One market source said, “There is still tension between suppliers and buyers in the market. But the volume of offer prices is falling and sellers are only giving offers when they see actual buyers.” Some market players believe the market trend will reverse after the SteelOrbis Fall 2019 Conference & 81st IREPAS Meeting which will be held in Dusseldorf at the start of next week, but there is also the opposite opinion in the market that prices have not yet reached the bottom and that the downtrend will persist.