New US scrap deals disclosed in Turkey today, February 1, do not show the price increase expected on the US side. However, the general expectation amongst players has not changed and next week will shed greater light on the future trend of deep sea scrap quotations.
SteelOrbis has learned that an ex-US deal was closed by an Iskenderun-based Turkish steel producer for HMS I/II 80:20 scrap at $422/mt CFR and shredded and bonus grades at $442/mt CFR. The cargo will be shipped in late February-early March.
Another ex-US booking was done by a Marmara-based mill for HMS I/II 80:20 scrap at $421/mt CFR, and shredded and bonus grade scrap at $441/mt CFR. The shipment date is the same as the first deal. The exact dates of the deals are not known, but it is thought they were closed prior to the ex-UK transaction reported yesterday, January 31. As a result of these deals, US origin HMS I/II 80:20 scrap prices will for now remain in the range of $425-426/mt CFR, preserving the traditional $5/mt gap between ex-US and ex-EU scrap prices.
A third deal, from the EU, has also been disclosed today, done last week by a producer in Izmir, with HMS I/II 80:20 scrap at $415/mt CFR.
Scrap collection prices at EU-based export yards remain at around €350/mt DAP, while sources still report slow scrap flow. Turkey’s long steel market continues to see sluggish demand. Turkey’s rebar spot prices have softened slightly, with 12 mm rebar spot prices in Turkey settling at $617-631/mt ex-warehouse. Meanwhile, the general official rebar prices announced by producers in the Marmara and Izmir regions vary at $625-645/mt ex-works. Kardemir also announced domestic rebar sales today at $631/mt ex-works, selling almost 30,000 mt.