With older and new deals surfacing today, January 21, it is observed that Turkey’s import scrap market is trying to find a balance in terms of prices. Older deals show that ex-US scrap prices decreased slightly, while European scrap is giving signals of an upward correction.
An Izmir-based Turkish steel producer concluded an ex-US scrap booking on Friday, January 17, for HMS I/II 80:20 scrap at $337/mt CFR, with shredded and bonus grades at $355/mt CFR. Another ex-US transaction was done by a Marmara-based producer for HMS I/II 80:20 scrap at $336/mt CFR. These price levels are merely $0.5/mt lower than the prices recorded in the previously confirmed ex-US deals.
Meanwhile, the Marmara-based producer is reported to have concluded an ex-Belgium booking with the cargo consisting of 26,000 mt of HMS I/II 80:20 scrap and 14,000 mt of bonus grade scrap at the average price level of $337/mt CFR. SteelOrbis has learned that the deal was in fact done but the composition is different from what has been reported. The booking signals the price of ex-Belgium HMS I/II 80:20 scrap at $330/mt CFR. An ex-France deal has been signed by an Izmir-based steelmaker for 17,000 mt of HMS I/II 80:20 scrap at $331/mt CFR and 4,000 mt of bonus grade scrap at $351/mt CFR. The prices in question indicate a narrower range for ex-EU scrap, with the general range moving from $325-334/mt CFR to $330-331/mt CFR.
With the abovementioned deals, the gap between ex-EU and ex-US HMS I/II 80:20 scrap prices is now at its usual level, increasing the expectations for a more positive market trend. Today, collection prices at Belgium-based export yards are at around €280/mt DAP, while in Amsterdam an exporter is willing to pay €285/mt DAP for scrap. A Germany-based sub-collector said it is not willing to cut their sales prices below €285/mt DAP amid the slow scrap flow in the country. BDSV’s prices are also showing slight changes over the course of January. Meanwhile, several Turkish mills are seeking deep sea cargoes for February shipment. Many market sources believe that deep sea scrap prices have hit the bottom in the new deals and are now set to rebound. “If the euro-dollar exchange rate remains relatively stable, European scrap prices are expected to move up slightly. Only a few - maybe two - sellers are under stress, the others are not. Some have even taken a step back to wait for higher bids from Turkish mills,” a source at a major Turkish mill reported today. One seller agreed that there is positive sentiment among sellers, saying that not a significant rise but a small increase in prices should be expected.