Turkey’s ex-EU deals done late last week indicate that prices have remained more or less stable.
An ex-Netherlands deal is closed at $384/mt CFR by an Iskenderun-based producer, which has also bought a cargo from Belgium with the HMS I/II 80:20 scrap reportedly standing at $384/mt CFR. Meanwhile, another ex-Belgium booking is done by a Black Sea based producer and the HMS I/II 80:20 scrap at $384/mt CFR. Therefore, European benchmark scrap quotations have declined from the upper end, settling at $384/mt CFR. The previous upper end was represented only by one ex-German deal done in late June and this level was not recorded again. Accordingly, ex-Europe scrap prices can be interpreted as stable. The German deal was considered to be an exceptional one and so the prevailing idea is that ex-Europe scrap prices have moved sideways.
Market sources largely believe that deep sea scrap quotations will remain in a narrow range. A slight increase in prices is found possible, but no decrease is expected in the coming days. “US suppliers are also fond of their margins is what I see. So, they are also not pushing for an increase,” a European scrap supplier told SteelOrbis. And the rising freight costs is not observed by all players yet. Again, a European scrap seller said that they are not experiencing difficulties in finding vessels yet.