A deal done from Europe to shows that EU-based scrap sellers have managed to increase their prices above $385/mt CFR Turkey.
The ex-Netherlands deals was closed by an Izmir-based producer for HMS I/II 80:20 scrap at $385.5/mt CFR, and shredded and bonus grades at $405.5/mt CFR. The cargo will be shipped in May. As a result, the ex-EU scrap price has increased by $4.5/mt as compared to the previous ex-France deal.
“This European deal has been closed somewhat higher than the anticipated levels,” a market player stated today, March 26. Market sources were expecting ex-US scrap prices to hit this level first. An US-based scrap supplier had been offering at $390/mt CFR, failing to get bids higher than $385/mt CFR. According to a source, “This is surprising for me, but after this deal we can see ex-US scrap prices move towards $390/mt CFR. Therefore, the number of offers in the market may increase.” There is little time left ahead of the Turkish local elections to be held on March 31. No consensus has been reached among market players about the appetite of Turkish mills for scrap purchases in this period. “Some may want to wait out the elections before starting to buy scrap, while others obviously do not agree as they are convinced prices are moving up,” another source commented. Following the ex-Netherlands booking, SteelOrbis will revise its ex-US and ex-Baltic scrap prices to $390/mt CFR.
Short sea scrap prices for ex-Romania HMS I/II 80:20 scrap will also be revised to $360-365/mt CFR.