Despite the recent ex-EU scrap prices in deals, ex-US scrap prices have remained firm at around $422/mt CFR Turkey. There is no support from the local US scrap market for export prices, while Turkish mills report that they have received several ex-US offers.
SteelOrbis has learned that a Marmara-based Turkish steel producer concluded the first ex-US deal on Friday, February 2, with HMS I/II 80:20 scrap standing at $422/mt CFR and shredded and bonus grades at $442/mt CFR. Some sources think that this cargo will be shipped in late February. Meanwhile, another ex-US cargo was bought by another Marmara-based mill again on Friday with HMS I/II 90:10 scrap standing at $425/mt CFR, indicating $422/mt CFR for HMS I/II 80:20. It is believed that this cargo is due to be shipped in early March. As a result, SteelOrbis has revised its ex-US HMS I/II 80:20 scrap prices down by $3.5/mt.
SteelOrbis has already reported that sentiment in the local US scrap market has dipped a little [due to falling US finished steel prices], with many suspecting that prices for certain scrap grades, in some regions, could fall slightly once the dust settles. Meanwhile, European scrap exporters say that there is no way they can accept lower than $420/mt CFR Turkey due to their collection prices and low availability. Some even reported that domestic scrap demand in the EU is also expected to increase as some mills are planning to restart idled furnaces. “It seems the US will determine the market until they sell what they have on hand to Turkey. Until their low-priced cargoes disappear, we [EU-based scrap suppliers] cannot do much,” a source commented. A European scrap supplier today commented, “All scrap export yards on the continent are now paying €350/mt DAP to sustain scrap flow.”