A few more deals for the deep-sea import scrap have been freshly disclosed in the Turkish market as the mills have been pretty much finishing their purchases for January shipments. The prices for the European scrap have remained stable in a deal from Belgium, while the transaction from the US suppliers reflects a small decline in mathematical calculation for the base scrap grade. However, most of the market players do not consider it a significant change in the market.
An Iskenderun region-based mill has closed a cargo for January shipment for HMS I/II (80:20), shredded and bonus scrap at the average price of $367/mt CFR for January shipment, in which the HMS I/II (80:20) material is evaluated at $361/mt CFR. The price level is in line with the previously valid range for HMS I/II (80:20) at $358-362/mt CFR. A deal from Netherlands, which was closed in mid-last week to the buyer, based in the Black Sea region of Turkey at $359/mt CFR for HMS I/II (80:20), has been reported in the market.
In addition, an Izmir region-based steel producer has agreed to pay $370.5/mt CFR for HMS I/II (90:10) scrap cargo to be shipped in January. In this booking, the HMS I/II (80:20) grade equivalent is evaluated at $366.5/mt CFR, $1.25/mt down from the HMS I/II (80:20), evaluated in the previous ex-US deal, closed last week.
Overall, few more deals for the import scrap in Turkey might be seen in the coming days for January shipments, but generally the mills are to proceed to conclude February shipment bookings. Despite weaker local rebar and billet workable prices, the import scrap prices are mainly expected to be maintained at the current levels, mainly due to $20-30/mt higher expectations in the US for January as well as the European suppliers might not be having a room to decrease their collection prices due to the current exchange rate. “In the first days of January suppliers and buyers will see each other’s position in terms of scrap trade, the expectation is for the market to remain within $365-368/mt for premium HMS I/II (80:20) [USA and Baltics] with $370/mt CFR remaining a psychological level,” a market source told SteelOrbis.
