As anticipated by SteelOrbis, the margin between ex-US and ex-EU scrap prices are once again tighter than usual. With a new deal done very recently, European HMS I/II 80:20 scrap prices have rebounded, following suit observed after ex-US scrap prices increased earlier this week.
SteelOrbis has learned that an ex-Netherlands deal was closed by a Marmara-based producer with the HMS I/II 80:20 scrap prices standing at $359.5/mt CFR and shredded scrap at $379.5/mt CFR. This price is $4.5/mt higher than the previous levels recorded in ex-UK bookings done late last week. This information was not confirmed by the buyer or the seller at the time of publication, though most players in Turkey’s import scrap market believe that the deal is done.
Meanwhile, an ex-Finland booking is reportedly done by a Black Sea-based mill for HSM I/II 80:20 scrap at $362/mt CFR and bonus grade scrap at $382/mt CFR. This price is slightly ($1.5/mt) lower than the ex-Baltic booking shared yesterday from Sweden. SteelOrbis will revise its ex-Baltic quotations to $362-363.5/mt CFR as of today, August 29.
While the most recent prices recorded for ex-US scrap standing at $363/mt CFR and now ex-EU scrap at $359.5/mt CFR, the margin between scrap supplier regions are at $3.5/mt CFR. The usual gap between these two supplier regions has been at $5/mt at least for the past months. Some market sources believe that the reluctance of European scrap suppliers to accept lower levels may provide support for ex-US scrap in the coming days. “The sentiment for the local US scrap market is vulnerable. However, since US suppliers rarely accept to cut prices lower than the EU, US-based suppliers may gain some leverage for October shipments”. Turkey’s need for September shipments is almost completed but many think Turkish mills are yet to start looking for cargoes to be shipped in October. “We did not hear any deals done for early October and I think some mills may need prompt shipments now for that period,” a seller stated. Having impacted the scrap market for a long time, import billet prices in Turkey are on the rise. All billet supplier regions are increasing their offers to Turkey, Turkey’s interest to increasing offer prices is lower as compared to recent past.