With the mood in Turkey’s import scrap market changing for the better, several deep sea scrap transactions have been disclosed to the market today, September 30. It is observed that Turkey has started to purchase deep sea cargoes for November shipments. Europe origin benchmark HMS I/II 80:20 scrap prices have increased significantly in a new deal, while ex-Baltic prices for the same grade indicate a slight increase if one excludes the latest ex-Finland cargo for an exceptionally good grade of scrap.
SteelOrbis has learned that an Iskenderun-based Turkish mill has concluded the ex-Belgium transaction consisting of 20,000 mt of HMS I/II 80:20 scrap, 10,000 mt of shredded scrap and 10,000 mt of a mixture of HMS I and P&S grade scrap at the overall average level of $442/mt CFR. SteelOrbis estimates the benchmark HMS I/II 80:20 scrap price to be around $433/mt CFR with a $15/mt premium for shredded and a $20/mt premium for P&S, though estimations for different premiums may lead to a $432-434.5/mt CFR range in this case. Previously, European HMS I/II 80:20 was bought at $425/mt CFR Turkey in a deal three days ago, and so it is safe to say that European scrap prices have recovered and now are in line with those in other regions.
Also, another Iskenderun-based producer has concluded a booking from St. Petersburg for 20,000 mt of HMS I/II 80:20 scrap at $435/mt CFR and 12,000 mt of bonus grade scrap at $450/mt CFR. The cargo will be shipped in the first half of November. Another rumor for a second ex-St. Petersburg cargo has also been shared in the market, signaling similar levels with HMS I/II 80:20 scrap at $434/mt CFR and bonus grade at $449/mt CFR. This booking has not been confirmed by the buyer or the seller by the time publication, though the cargo is reportedly for 30,000 mt of scrap in total. SteelOrbis’ ex-Baltic scrap prices were in the range of $433-442/mt CFR Turkey after the ex-Finland deal representing the upper end.
A major European scrap supplier has stated that there are price inquiries for scrap from Turkey, adding, “Turkey is not the only destination that is asking for scrap. We are still receiving demand from other regions such as Southeast Asia and the Indian subcontinent.” This supplier expressed the view that, with the blast furnaces’ increased scrap usage in production, the slower scrap flow to yards and higher freight numbers on both sides of the Atlantic, premium scrap prices may see a good recovery and test levels of $460s/mt CFR Turkey in the coming period. A German supplier shared its most recent sale to Antwerp, with the price for HMS I/II at €300/mt DDP and the HMS I/II 80:20 scrap price at €310/mt DDP. Another source stated that, with the increasing oil quotations and global inflation, scrap shall also be impacted. Also, one trader reported that his European sellers are not offering to Turkey despite the price inquiries received from Turkish mills. With the US sellers staying out of the market, the mood is changing in Turkey’s import scrap market. Some sources have started to voice their expectations of a stable trend or even of a slight revival in prices.