Another import scrap deal from Europe has surfaced in the Turkish market, this time from the Netherlands. Although the deal shows a decline in the premium scrap price, most market players do not see it as a market trend reversing since the cargo is of lower quality.
A Turkish Marmara region-based mill has recently booked an ex-Netherlands scrap cargo for January shipment, consisting of HMS I/II (80:20) at $346/mt CFR and bonus grade at $366/mt CFR. The previous deal from the EU was closed at $349.5/mt CFR for HMS I/II (80:20) for ex-Germany lot. However, taking into account the difference in quality, the price of the mentioned ex-Netherlands booking is considered in line with the earlier ex-EU levels or as a normal market correction, rather than a price decrease. “It is a stable booking but EU sellers were looking for $350s after ex-Germany booking and seems they could not achieve,” a trader told SteelOrbis.
According to sources, Turkish mills still have around 5-7 cargoes minimum to book for January shipments and there is a certain resistance from the producers’ side to accept above $350/mt CFR for HMS I/II (80:20). In addition, mills prefer booking from Europe nowadays, feeling that ex-US suppliers are not willing to sell at the current European levels. “For US maybe at around $350-355/mt CFR some buyers might consider to average out the quality of the earlier lower quality bookings,” a market player mentioned. Currently, ex-US sellers are looking to achieve around $358-360/mt CFR for HMS I/II (80:20), SteelOrbis understands.