In new two ex-US scrap bookings done by two different Turkish producers, the sharp price decline observed in the recent ex-Europe deal has now been confirmed. Turkey’s focus on cheaper billet imports and its reluctance to accept offers from scrap sellers has caused the market to take a sharp downward turn.
SteelOrbis has learned that an ex-US deal from Houston has been closed by an Iskenderun-based producer for 21,000 mt of HMS I/II 90:10 scrap at $383/mt CFR and 5,000 mt of P&S grade scrap at $398/mt CFR. Considering the HMS I/II 90:10 scrap prices in question, the HMS I/II 80:20 price would be at around $378-380/mt CFR. The second ex-US scrap deal was also done from Houston, to a Turkish mill in Izmir, for 5,000 mt of HMS I/II 90:10 scrap at $382/mt CFR and 25,000 mt of shredded scrap at $397/mt CFR, for late September shipment. This deal also indicates that the HMS I/II 80:20 scrap price would be at around $377-379/mt CFR. As a result, SteelOrbis will revise all its prices downwards, lowering the ex-US reference price by $9.5/mt to $377-379/mt CFR. Due to the fall in ex-US scrap prices, ex-Baltic and ex-EU scrap prices will be revised to $373-375/mt CFR and $370-373/mt CFR, respectively.
Market sources report that scrap collection prices at EU export yards have declined by around €10/mt too. According to sources, an Amsterdam-based export yard is currently paying €310/mt DAP, while at Belgian scrap yards the price is currently at €305/mt DAP. While some sources in the market, both sellers and buyers, thinks deep sea scrap prices still have some room to move down, others do not agree. Those predicting a downward trend think Turkey has concluded deals for large tonnages of cheaper import billets and could still buy more if needed. “Therefore, prices at around $370/mt CFR on average would be more helpful to the market in the absence of proper support from finished steel demand,” a source said. Another market player said below $370/mt CFR would not be so easy to achieve and that some sellers have already taken a step back to see whether low-priced scrap offers will continue to be seen.
