In the new deals concluded this week, deep sea scrap prices have remained firm in Turkey.
SteelOrbis has learned that an ex-US cargo has been bought by a Marmara-based producer with HMS I/II 80:20 scrap at $500/mt CFR, while shredded and bonus grades in the cargo were priced at $520/mt CFR. Prior to this deal, another deep sea cargo was bought from Puerto Rico specifically, at $494/mt CFR and SteelOrbis’ prices were in the range of $494-500/mt CFR.
Also, another ex-UK deal has been closed by another Marmara-based steelmaker for HMS I/II 80:20 scrap at $491/mt CFR. In the previous deal HMS I/II 80:20 scrap was bought at $489/mt CFR.
A third deal is rumored for ex-Denmark scrap, with HMS I/II 80:20 standing at $498/mt CFR, though no further details have been shared about this reported booking at the time of publication. SteelOrbis’ daily prices for Baltic HMS I/II 80:20 scrap are in the range of $494-500/mt CFR.
These deals disclosed today signal a firm stance on the sellers’ side and may limit expectations for a decline in quotations. A source stated that the mood in the market has revived after these deals and that perhaps the anticipated decrease will not be seen at all. There is demand coming from Turkish mills for deep sea scrap, supporting the sellers’ firm stance. Turkish mills need at least 20 deep sea cargoes for December shipments and are not taking a break from purchases. The disruptions in shipments continue, sources agreed, and so no decrease in freight is expected. Under the current circumstances, deep sea scrap sellers are not willing to cut offers. SteelOrbis hears that European suppliers are aiming for 490-495/mt CFR, considering this level as workable. There are not many offers from the US, SteelOrbis understands. And the offers from the Baltic region are still above $500/mt CFR. On the other hand, another source said that prices have room to move down towards $480/mt CFR Turkey for prime grades amid the lack of exports and the decreases observed in China.