As SteelOrbis mentioned earlier today, March 26, the mood in the Turkish import scrap market has changed and buyers are now more willing to conclude new deep sea deals.
Accordingly, SteelOrbis has learned that a Samsun-based producer has concluded an ex-UK deal for 20,000 mt of HMS I/II 80:20 scrap, 10,000 mt of bonus grade scrap and 10,000 mt of shredded scrap at the average level of $420/mt CFR, for May shipment, which signals for $415-416/mt CFR levels as an indicative price for benchmark HMS I/II 80:20 scrap.
Also another ex-Belgium cargo has been bought by a Marmara-based mill. The cargo in question reportedly consists of 15,000 mt of HMS I/II 80:20 scrap and 25,000 mt of shredded scrap at the average price level of $414/mt CFR. Some market sources state that this deal was done before the ex-UK transaction abovementioned. According to this information the benchmark HSM I/II 80:20 scrap price is estimated to be at around $411/mt CFR Turkey. Previous to these transactions, SteelOrbis’ estimated price for European HMS I/II 80:20 scrap was in the range of $420-425/mt CFR Turkey.
As one can see, Europe origin benchmark scrap prices have decreased slightly with the first deals recorded after the long-lived silence in the market. A slight decrease in prices was anticipated by some players, though considering the large tonnages Turkey will need in the coming period and the positive sentiment in the market created with the livelier demand, prices are expected to move up in a slow pace in the coming round.