In a newly closed deal from the US, a slight decline in Turkey’s import scrap market has been recorded.
SteelOrbis has learned that the deal was done by an Iskenderun-based producer for 15,000 mt of HMS I/II 85:15 scrap at $363.5/mt CFR and a total of 10,000 mt of P&S and shredded scrap at $381.5/mt CFR. The cargo will be shipped in November and the deal was closed yesterday, October 26. Prior to this deal, SteelOrbis’ reference prices for ex-US HMS I/II 80:20 scrap was at $360-363/mt CFR, which has now declined to $360/mt CFR.
Despite the expectations of a lower price for premium grades, the price has more or less held its ground in the deal mentioned above. “The price may be the result of the changes in the euro-dollar exchange rate,” a source commented, adding, “Taking the appreciation of the euro into consideration, this ex-US price is in line with the collection prices in the EU.” European scrap exporters’ collection prices have remained at €300/mt DAP Amsterdam, and scrap flow to yards has been slow. The rising gas and oil prices are causing collection costs to increase in the EU. While collectors believe significantly increasing inventories will be a risk towards the end of the year, the current levels bid by export yards are not favorable.
Short sea scrap prices are in the range of $330-335/mt CFR for ex-Romania and ex-Bulgaria HMS I/II 80:20 scrap. Although an ex-Romania HMS I/II 80:20 scrap cargo was sold to Turkey at $315/mt CFR, this cargo was offered promptly and was a special case and is considered to have been sold lower than the real market price.
