This week started with two deep sea scrap bookings in Turkey by two separate buyers, with prices still relatively stable. The positive sentiment in the market is shared by many players, though a sharp surge in deep sea scrap prices is considered unlikely for now.
A cargo from Klaipeda port in Lithuania was bought by a Marmara-based producer with 30,000 mt of HMS I/II 80:20 scrap at $384/mt CFR and 8,000 mt of bonus grade scrap at $404/mt CFR. This deal was closed yesterday, June 5. The benchmark HMS I/II 80:20 scrap price in this cargo pushed down the general range for ex-Baltic material by $0.5/mt to $384-387/mt CFR Turkey.
Additionally, an Izmir-based producer has concluded a transaction for an ex-US cargo consisting of 20,000 mt of shredded and 10,000 mt of bonus grade scrap at $407/mt CFR. Based on this information, market players largely think that the HMS I/II 80:20 scrap price is once again at $387/mt CFR, the same level recorded in the previous ex-US booking. The lower end of $385/mt CFR for US origin HMS I/II 80:20 is not valid anymore.
Despite the small fluctuations observed, the general price range of HMS I/II 80:20 scrap remains at $383-387/mt CFR Turkey. The number of Turkish mills seeking scrap has increased, according to sources. Also, there is resistance from sellers, who are now aiming for higher levels, easily above $390/mt CFR for premium grades. “Except for the period when the Turkish market was impacted by the earthquake, Turkish mills bought at least 1.2-1.3 million mt of scrap per month. Therefore, we have a long way to go for July shipments,” a supplier of ex-US and ex-EU scrap commented. Turkey is estimated to have bought eight deep sea cargoes for July shipments, or, according to some sources, 250,000 mt at most. Another European scrap seller said that collecting scrap is getting harder with the DAP prices continuing to increase. According to a German sub-collector, bids received from scrap export yards are currently in the range of €315-320/mt DAP. Several sources report that billet prices are also recovering, providing support for the scrap market. Deep sea scrap prices in Turkey are set to test $395-400s/mt CFR in the coming period, before the Feast of Sacrifice holiday starting on June 27. Most market players will be out for a full week due to the long holiday.