Friday, January 21,
The sentiment in the ferrous scrap market has softened this week as cargoes of material cfr Turkey were booked at lower levels amid market rumors that further cargoes have been booked at even lower levels to confirmed deals.
The last deal heard concluded, cfr Turkey basis, changed hands on the 12 January; Esa sold an unknown quantity of HMS 1&2 (70:30) at $495.ton. A day earlier, Cargill sold unknown quantities of HMS 1&2 (80: 20) and shredded scrap at $495/ton and $500/ton respectively, cfr Turkey. A major Turkish mill informed WSW Thursday morning that the current offers were on the market; Cargill is offering HMS 1&2 (80:20) at $500/ton, Van Hygen offers HMS 1&2 (70:30) at $490/ton and Belgium Scrap Terminal offers HMS 1&2 (70:30) at $489/ton. Another Turkish mill source said.
“Russian material is now being sold at $480/ton and Bulgarian at $470/ ton. Israel is offering at $470/ton but there seem to be no takers for this. The US is still holding back it seems, but I believe that I can get shredded at $500/ton from here”.
Market Not Losing Its Bullish Undertones Despite Lower Deals Amid confirmed deals, rumors have appeared, with participants claiming that a cargo of HMS 1&2 (70:30) material changed hands at $489/ton cfr Turkey, yet this remains unconfirmed. Nevertheless, the lower deals this week did little to change trader’s opinions that the scrap market was losing its bullish undertones. “The floods in Australia and the general mood in scrap mean that the sentiment in raw materials at the moment is bullish.
Most people are anticipating the Turkish to come back and buy now in February”, a European recycler said. In the US market, ferrous scrap for export from the East Coast tracked higher to $465/ton this week. As a result, the higher export prices meant domestic mills have had to face higher offers from suppliers, a US-based trader informs. “Not much material is going to Turkey right now, but no one is too concerned by that. We are seeing healthy demand for material though from other parts of the Mediterranean, such as from the Italians and Egyptians.” Offers from the US to Turkey for HMS 1&2 (80:20) material stand at $510/ton, traders said. US traders alluded that cargoes of US scrap had also parted for China over the last week, “in significant quantities”, but were unable to confirm the amounts. Indian Prices Tracking Lower
Because Of Turkish News In the Indian market, traders confirmed that prices were coming off this week. British suppliers said they
were able to sell cargoes of shredded at $485/ton cfr Nhava Sheva port. Offers have fallen this week to $470-475/ton cfr Nhava Sheva, traders said. “India’s prices are tracking lower because of the Turkish news. India has no scrap material but most are expecting a spike in prices after 15 February.”
In the Southeast Asian market, offers into the region remain pretty range bound on last week’s levels, traders said. HMS 1&2 (80:20)
delivered into the region from the US, Europe and the Middle east region are quoted at $490-500/ton cfr, with little give on last week.
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