While an ex-UK cargo has been bought by Turkey at a higher price level, market sources report that the delivery will be done within a very short term and so a premium was paid for the cargo in question. Sentiment in Turkey’s import scrap market is still strong, though demand for rebar in the local market has slowed down significantly.
SteelOrbis has learned that the booking in question was done by an Izmir-based producer, with the cargo consisting fully of HMS I/II 80:20 scrap bought at $384/mt CFR, for prompt shipment. While the total tonnage of the cargo is rumoured to be 20,000 mt, this information was not confirmed by the time of publication. The level of benchmark HMS I/II 80:20 scrap in the transaction is $4/mt higher than the previous ex-EU deals but this is considered to be due to the the premium for prompt shipment. “Hence, another ex-EU booking will have to be seen at above $380s/mt CFR so that this price can stick,” a source commented.
On the other hand, the number of deep sea offers shared with Turkish mills has increased this week to seven or eight, according to sources. Turkish mills are not showing much interest in offers at around $390/mt CFR. While the local US scrap market is set to move up in price in the first round of purchases, while scrap flow in the US is also observed to be on the low side. Scrap flow in the EU has not recovered over the past week, though some sub-collectors report that there is a €5/mt softening in collection prices of export yards to €315/mt DAP Amsterdam. Another Germany-based sub-collector reported that they concluded sales to Antwerp at €330/mt DAP for HMS I/II 70:30 scrap and at €340/mt DAP for bonus grade scrap. The situation in the local rebar market has also changed this week, while traders have already filled their inventory levels and are more interested in selling before buying anymore rebar. There is a $10/mt softening in Turkish mills’ unofficial rebar offers to their domestic market, and, as SteelOrbis mentioned before, this was expected for some producers will be willing to sell at lower levels before the end of this year to achieve better account books. While deep sea scrap quotations are expected to remain firm in the short term, there could be a slight decline at the end of December during the holiday season.
An ex-Romania deal has been closed for HMS I/II 80:20 scrap at $364/mt CFR, while an ex-Adriatic deal for the same grade has been closed at $365/mt CFR. Accordingly, SteelOrbis’ short sea scrap prices will increase slightly to $364-365/mt CFR.
