In deep sea scrap deals done on Friday, December 1, scrap prices for Turkey have increased sharply again. It is understood that the lack of offers in the market caused sellers to ask for higher price levels, which were accepted by Turkish mills. The increasing trend is expected to continue this week as there still are some mills seeking cargoes. “This upward movement of prices will not stop unless the mills press the brake,” a supplier of ex-US and ex-EU scrap commented. A major European scrap seller said he believes that the current levels will not be considered workable in the near future. The representative of a Turkish mill said that price levels are on the high side as compared to their initial expectations, but the sellers are citing increasing freight rates as support for the price rises.
A Black Sea-based producer has concluded an ex-US booking for 10,000 mt of HMS I/II 80:20 scrap at $415/mt CFR and for 22,000 mt of shredded and bonus grade scrap at $435/mt CFR. This level is $11/mt higher than the price in the previous ex-US deal.
Meanwhile, two ex-European transactions were done by Turkish steel producers. An Izmir-based producer has bought an an ex-Netherlands cargo with HMS I/II 80:20 scrap standing at $407.5/mt CFR, and an Iskenderun-based producer has concluded a deal from the UK for HMS I/II 80:20 scrap at $405/mt CFR for January shipment. These levels also indicate a significant rise for ex-Europe scrap.
The deal reported from the Baltic was closed at $397/mt CFR by a Marmara-based steelmaker, though the deal was older than the abovementioned bookings, with the price level now considered low for ex-Baltic transactions.
As a result, despite the lack of new deals, SteelOrbis has increased its short sea scrap prices to $380-385/mt CFR.