An ex-US scrap deal done by an Izmir-based producer was closed for HMS I/II 90:10 scrap at $328/mt CFR. This price indicates that HMS I/II 80:20 scrap prices would be around $325/mt CFR. A second ex-US booking signed by a steelmaker in Iskenderun yesterday for HMS I/II 80:20 scrap at $325/mt CFR. There is a third deal closed earlier this week by an Iskenderun-based mill for HMS I/II 80:20 at $330/mt CFR. As a result, it is safe to say that the benchmark scrap price has declined by another $6.5/mt from last week.
Meanwhile, one of the above-mentioned Iskenderun-based producers concluded two more deals. One of them was from St. Petersburg for HMS I/II 80:20 scrap at $320/mt CFR. This level is $10.5/mt lower than SteelOrbis' previous ex-Baltic quotations, which has been revised to $320-325/mt CFR as of today.
The producer in question has also bought a cargo from the UK, with the HMS I/II 80:20 scrap price at $312/mt CFR. As compared to the most recent ex-EU prices in the range of $325-327/mt CFR, this transaction shows a significant decline. Market sources report that this cargo was a stressed one but still is not the only one. There is another rumor of an ex-Eu cargo with prices at $315/mt CFR. While this information was not confirmed or denied at time of publication, for a cargo from European continent, the price is considered workable. As a result, ex-EU/UK prices of SteelOrbis have been revised to $312-315/mt CFR.
The main question of whether this is the bottom or not still lingers in the market. Some sources believe that it can be the bottom, while mills say unless their sales recover there is no way to support scrap prices. The lack of steel sales continue, though some rebar has changed hands yesterday in Iskenderun and Izmir regions. Market sources think the 40.000-45.000 mt of a tonnage is still low considering Turkeys huge production capability.