After the sharp surge observed earlier in the week, imported scrap prices to Turkey continue to move up in recent booking, on account of tight supply. With European and American recyclers operating partially with lesser workforce due to covid-19 restrictions, the inflow of scrap to yards is very slow, with low collection rate. Hence, unlike last month, suppliers are in no compulsion to clear their stock selling at low rates, resulting in the sharp hike in workable price.
In the latest deal confirmed yesterday, a recycling yard from Russia, sold a bulk cargo to a Turkish steelmaker based in Eastern Black Sea Region, comprising of HMS 1&2 (90:10) at USD 248/MT CFR Turkey, putting the price for HMS 1&2 (80:20) from Baltic origin at USD 245/MT CFR.
Prior to this, at end of last week, a bulk cargo from a Belgium recycler was sold to a Mediterranean region based steel mill, comprising of 40,000 MT of composite cargo at USD 235/MT HMS 1&2(75:25), USD 243/MT Shredded, USD 248/MT for P&S and USD 253/MT for Busheling, CFR Turkey, putting HMS 1&2 (80:20) price at USD 238/MT CFR from Baltic origin.
After normalizing the latest deal, SteelMint’s assessment for USA origin HMS 1&2 (80:20) now stands at USD 248/MT CFR Turkey, rising by USD 7-8/MT against this week’s opening, whiel in comparison to early last week, the assessment has climbed up by USD 32/MT. Notably, after bottoming out in March end, when a Baltic deal was closed at USD 207/MT, the prices have shot up by over USD 40/MT since then. Meanwhile, assessment from Europe stands at USD 243/MT CFR Turkey now.
Some sources mentioned that smaller sized cargoes from nearby origins will be more preferable to mills under the present circumstances, who are careful about their inventories prevailing amid production cuts.
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