Having experienced a relatively lively week, a new ex-Baltic deal has been disclosed to the market today, July 17, at higher price levels.
SteelOrbis has learned that a Black Sea region-based Turkish mill has concluded a deal for an ex-Finland cargo consisting of 8,000 mt of HMS I/II 80:20 scrap at $260/mt CFR, 14,000 mt of shredded scrap at $265/mt CFR and 4,000 mt of bonus grade scrap at $270/mt CFR. The cargo will be shipped in the second half of August. In the light of this information, ex-Baltic benchmark HMS I/II 80:20 scrap prices have indicated a $5/mt increase.
Although another deal from the Baltic to Turkey’s Izmir region for a total 25,000 mt has been heard today with HMS I/II 80:20 scrap priced at $261.5/mt CFR, this deal has not been confirmed by the buyer or the seller.
According to market sources, US-based suppliers’ price ideas are now above $265/mt CFR, which is similar to Baltic region-based suppliers’ price idea for the next round of sales. The most recent ex-US deal to Turkey was closed this week at $258.5/mt CFR. Market sources state that some suppliers may take a step back from the market while they wait for Turkish mills to agree their targeted price levels.
Meanwhile, the price levels for ex-Europe HMS I/II 80:20 scrap to Turkey are expected to increase to $255-260/mt CFR. With the dollar now standing at 1.14 against the euro, the costs of European sellers are rising. Also, SteelOrbis has learned that freight rates to almost all destinations have moved up.
The sales recorded in the local Turkish rebar market this week, totaling approximately 58,000 mt, as well as domestic and export sales in Turkey’s hot rolled coil (HRC) segment, are being closely monitored by all players. The mood in Turkey’s import scrap market is positive, with prices expected to continue to move up at a gradual pace.
