In new deals closed from the EU and the Baltic, Turkey’s deep sea scrap prices have stabilized. Turkish mills are inclined to accept the current levels, while showing some resistance to further increases.
An ex-Netherlands deal was closed by an Iskenderun-based producer for HMS I/II 80:20 scrap at $385/mt CFR and for bonus grade scrap at $405/mt CFR. The price is the same as in the deal heard yesterday.
Two ex-Baltic deals from Lithuania are rumoured to have been transacted also. A Marmara-based producer closed the first one at $389/mt CFR, while an Izmir-based mill accepted to pay the same level, with both being for HMS I/II 80:20 scrap. These cargoes are reported to be for shipment in April.
European scrap suppliers say that their collection prices are set to increase in the coming period. SteelOrbis hears that there is demand from alternative markets such as Egypt and Morrocco. One Baltic-based scrap supplier said prices received from the alternative markets are more attractive than those from Turkey. Meanwhile, domestic HMS I grade scrap prices in Poland are currently standing in the range of €340-345/mt DAP. Another European scrap supplier said today, March 28, “The market could go anywhere and I do not think we would be surprised. This is an interesting time for all market players.” The vessels arriving at Turkish mills’ ports carry higher-priced scrap, hence every deal closed at lower levels cuts Turkish mills’ future costs in term of their scrap inventories. On the other hand, just this week Turkish mills closed around eight deals, covering a lot of their needs. “Their appetite in the coming week will determine the price trend. There may be silence ahead of the the end-of-Ramadan holiday. They may focus on short sea scrap instead of paying the higher levels asked by the sellers,” a source commented. For now, SteelOrbis’ deep sea scrap prices remain in the range of $385-390/mt CFR.