In older deals closed on Friday, September 5, Turkish mills have achieved another drop - of $1/mt on average - in their ex-US scrap prices.
Two Iskenderun-based Turkish steel producers bought deep sea scrap cargoes from the same US-based scrap supplier, with HMS I/II 80:20 scrap standing at $342/mt CFR. These deals follow the previous ex-US cargo sold approximately at $343/mt CFR. Currently, the price line is expected to be held at $342/mt CFR, but Turkish producers continue to exert pressure on sellers.
The workable levels for ex-Baltic scrap cargoes remain at $336-340/mt CFR, while some ex-Scandinavian scrap prices may remain at higher levels of around $342-343/mt CFR. European scrap prices are expected to decline towards $335/mt CFR and buyers are targeting even below that level. Higher grade scrap prices have declined in the US local scrap market with the September buy-cycle concluded, while HMS, shredded and P&S grades have maintained a sideways price movement, according to market sources. Scrap demand in Europe is expected to recover very slightly during September, though a sharp increase in prices is considered to be unlikely for now.
As the new week starts, SteelOrbis expects deep sea scrap prices to follow their previous soft to sideways price trend.
