While no deep sea scrap deal has been concluded since SteelOrbis’ report published yesterday, August 4, two ex-Adriatic deals have been disclosed to the market, supporting the uptrend expectations shared yesterday.
An ex-Croatia deal has been transacted by an Izmir-based producer for HMS I/II 80:20 scrap at $360/mt CFR and bonus grade scrap at $375/mt CFR. The cargo consists of a total of 25,000 mt of scrap and is for prompt shipment. Earlier this week, Adriatic-based suppliers were asking for $340/mt CFR and above, while Turkish mills did not accept such levels.
Meanwhile, another deal from Italy has been concluded by an Izmir-based mill for 5,000 mt of HMS I/II 80:20 scrap at $365/mt CFR.
Traditionally ex-Adriatic scrap prices are approximately $5/mt lower than the mainstream ex-continental Europe scrap cargoes. Accordingly, ex-Europe HMS I/II 80:20 scrap prices are now at at least $365-370/mt CFR Turkey, also supporting the idea of ex-US scrap offers above $380/mt CFR. According to a seller, “This week has ended with these deals for small tonnages, but next week will start on a positive note.” A Germany-based source commenting on the situation, “Sentiment changed here rapidly. Scrap is not flowing. The uncut scrap price increased to €250/mt from the level of €200/mt. The problem is not just the lack of flow, but also disrupted transportation. River water levels have declined to 62 cm, water channels are closed when it falls to 50 cm.” A sub-collector, also based in Germany, reported that collection prices bid by exporters are in the range of €290-300/mt but “this is the level of last month when not many accepted to sell to yards. So, I think our side may wait a bit longer for higher levels.”