Ex-Europe deals have been disclosed in Turkey’s import scrap market today, May 12, with higher price levels fixed for HMS I/II 80:20.
SteelOrbis has learned that an ex-UK scrap deal was closed by an Izmir-based mill yesterday, May 11, for HMS I/II 80:20 scrap at $499/mt CFR and shredded scrap at $519/mt CFR, to be shipped in the second half of June. As anticipated by SteelOrbis, the gap between HMS I/II 80:20 scrap and shredded scrap prices has widened to $20/mt, larger than the traditional $5/mt or $10/mt recorded lately. HMS I/II 80:20 scrap prices were at $465/mt CFR in the most recent ex-EU scrap deal done in Turkey from Belgium, though SteelOrbis’ price estimation for European HMS I/II 80:20 was in the range of $485-490/mt CFR before this deal from the UK.
Also, another ex-Belgium deal was reportedly done to Turkey’s Iskenderun region for a cargo consisting of 20,000 mt of HMS I/II 80:20 scrap, 10,000 mt of shredded scrap, 4,000 mt of new cuttings and 6,000 mt of a mixture of P&S grade and HMS I scrap at the overall average level of $500/mt CFR. This cargo will also be shipped in June. According to this information, the benchmark HMS I/II 80:20 scrap prices is estimated to be around $493-495/mt CFR.
For some time now, deep sea suppliers have been offering prime grades at $500/mt CFR and above. With this ex-European cargo closed at $499/mt CFR for HMS I/II 80:20 scrap, it is safe to say that workable deep sea prime grade scrap quotations are now above $500/mt CFR. According to market players, there are three to five suppliers in the market, seeking opportunities to sell to Turkey. The sharp increase in prices in Turkey’s finished steel market in global commodity prices provides strong support for scrap quotations. A source at a Turkish mill stated that order books are fairly full for the coming period, and so, even if scrap prices record a slight correction after the end-of-Ramadan holiday, any correction will be short-lived and prices are set to increase again.
On the short sea side, the workable levels for HMS I/II 80:20 scrap from Romania and the Adriatic region are considered to be $490/mt CFR and above. There was an ex-Israel deal done in Iskenderun yesterday, closed for HMS I/II 75:25 scrap at $465/mt CIF, while market players state that their new targeted level is $475/mt CIF Iskenderun minimum.
