Two new deals from late last week signal that European scrap prices have remained firm. Some market players believe that the recent uptrend in Turkey’s import scrap market is near its end. “The number of buyers is now lower than the number of sellers. Interest in deep sea scrap prices is decreasing after the last round of purchases,” a European seller said.
An ex-Europe scrap cargo was sold to a Marmara-based mill, from two ports, in the UK and the Netherlands, with HMS I/II 80:20 scrap at $373/mt CFR and bonus grade scrap at $393/mt CFR. Another ex-UK scrap cargo is reported to have been sold to an Iskenderun-based producer with 30,000 mt of HMS I/II 80:20 scrap at $373/mt CFR and 10,000 mt of bonus grade scrap at $393/mt CFR, to be shipped in the second half of December. As a result, ex-EU benchmark scrap prices have increased by another $0.5/mt.
Meanwhile, short sea prices for ex-Romania HMS I/II 80:20 scrap remain in the range of $355-359/mt CFR. Demand for short sea scrap cargoes is still livelier than before, a market source reported.
Under the current conditions, deep sea scrap prices may start to move sideways unless a recovery in the domestic rebar market is seen. “The only thing supporting the domestic rebar market is the lack of some dimensions,” a source reported today. While some Turkish mills’ official rebar offers to the local market are rising, they are not met with much appetite from buyers. Hence, after concluding a high number of deep sea scrap deals over the past two weeks, Turkish mills may be ready to take a breather, which would lead to a stable price trend with a tendency to move down, depending on the longevity of the break from purchases.