The psychological threshold of $340/mt CFR has been surpassed by the ex-US scrap sellers this week, followed by the ex-Baltic quotations, supporting the cargoes coming out of the EU.
SteelOrbis has learned that an ex-US scrap deal was done on Monday by an Izmir-based producer for HMS I/II 80:20 scrap at $341.5/mt CFR, rising quotations by $1.5/mt. The same producer has bought an ex-Belgium cargo with the HMS I/II 80:20 scrap standing at $338/mt CFR, increasing prices by $4/mt. Another mill in Izmir has also concluded an ex-Gdansk booking for HMS I/II 80:20 scrap at $340/mt CFR, indicating a stable trend for this grade.
Market sources report that the collection prices in the EU export yards are now in the range of €260-267/mt DAP, flow is stronger on the upper end. “Europe-based producers cut their local scrap procurement prices by €30-41/mt this month. With this move their prices are now in line with the prices coming out of export yards. However, impurity is taken more serious by European mills, so the flow to export yards is gaining momentum,” a Germany-based sub-collector mentioned today, May 14. “In the second half of May, the number of available cargoes from the EU may increase once again, especially with the lower euro-dollar exchange rate,” he added. The same scenario is mentioned by the US-based sources, mentioning the prices shared by the US export yards are more attractive compared to the local mills’ workable levels after the May price cut. “We do not expect a quick surplus in the US export docks, but it is a possibility for late May- early June period,” a source from a major US exporter said. As SteelOrbis reported earlier, US ferrous scrap prices for May delivery in the US Ohio Valley and Northeast regions settled $30-40/gt ($30-41/mt) less this week during monthly May buy-cycle negotiations. Meanwhile, sources report that Egypt has returned to the market with interest to procure scrap. “There is a strong demand received from Egypt this week,” a European scrap supplier said.
Turkish rebar and wire rod prices, locally and for exports, have increased over the past week. Ex-Turkey rebar offers vary at $550-560/mt FOB for late May-June shipment, up by $10/mt over the past week. In the Turkish domestic rebar market, official offers have settled at $550-565/mt ex-works, up $5-10/mt week on week. In the Izmir and Marmara regions, the workable levels are at $545-560/mt ex-works, also up by $5-10/mt over the past week. This slow movement could be achieved by the stronger scrap prices, market sources believe and not due to any changes in the fundamentals of the local rebar market itself. Deep sea scrap prices in Turkey are expected to maintain their slow upward movement in the coming week, though most sources believe that a faster increase is unlikely.