Many rumors about new deep sea scrap deals have been heard in the Turkish import scrap market this week, while today (Sept. 9) three of them have been disclosed with details.
SteelOrbis has learned that an ex-Belgium scrap transaction has been concluded by an Izmir based producer for a cargo consisting of 15,000 mt of HMS I/II 75:25 scrap, 15,000 mt of shredded scrap and 10,000 mt of bonus grade scrap at the average price of $300/mt CFR. In the light of this information, HMS I/II 80:20 scrap quotations is estimated to be at $298-300/mt CFR Turkey. Previous to this deal the estimated level for ex-EU prime grade scrap was at $287.5-293/mt CFR.
Meanwhile two ex-US scrap deals have been disclosed to the market. One was made by a Marmara-based mill for HMS I/II 80:20 scrap at $301/mt CFR, shredded scrap at $306/mt CFR and bonus grade scrap at $311/mt CFR. The second one was made by the same buyer, with the same composition. Previous to these transactions, ex-US HMS I/II 80:20 scrap price was at $294-299/mt CFR Turkey.
A major European scrap supplier states that there is significant domestic demand in the both sides of the Atlantic Ocean, and this local demand has caused a shrinkage in the supply. Especially in the EU side, during the holiday season the collection activities were slow, as mentioned before by SteelOrbis. With the local mills restocking in the region, a price increase is expected. Also on the US side, domestic scrap prices have increased significantly, causing competition for the export yards. The general opinion of the market is that deep sea scrap quotations in Turkey will continue rising, some foresee prices to test $310/mt CFR Turkey and even surpass this level.