DAILY STEEL SCRAP: Turkish mills resume deep-sea purchases, prices down $6/tonne

At the end of the last week, a steel mill in the Izmir region booked a European cargo at £417 per tonne cfr for HMS 1&2 (80:20).

And a steel mill in the Iskenderun region booked a Venezuelan shipment of 25,000 tonnes of HMS 1&2 (80:20) at £415.50 per tonne cfr. However, the Venezuelan cargo was not taken into the index calculation, as it was not a traditional supplier. These deals compared with the previous deep-sea cargo sold on April 9, when a steel mill in the Iskenderun region paid an average price of £436 per tonne cfr for 35,000 tonnes of HMS 1&2 (95:5) and 15,000 tonnes of shredded.

As a result of the fresh transactions on Monday, the daily scrap indices went down. Fastmarkets’ daily index for steel scrap, HMS 1&2 (80:20 mix), North Europe origin, cfr Turkey was calculated at £417 per tonne on April 19, down by £6.27 per tonne day on day. And the daily index for steel scrap, HMS 1&2 (80:20 mix), US origin, cfr Turkey was £422.97 per tonne on Monday April 19, also down by £6.27 per tonne day on day, leaving the premium for US material over European scrap at £5.97 per tonne.

In addition, a steel mill in the Iskenderun region was heard adding more HMS 1&2 (80:20) to its previously purchased UK cargo at £422 per tonne cfr. And another European cargo came to light after the calculation of the indices, with a mill in the Izmir region booking another European cargo at £416 per tonne cfr for HMS 1&2 (80:20). Suppliers in the United States and the Baltic Sea were trying to maintain their existing offer prices, market sources said.

“Deep-sea scrap import prices have gone down as expected,” a Turkish mill source said. “Suppliers in the US, for example, are still aiming to sell at £430 per tonne cfr and above, as they have good domestic demand.

However, the new price level for Turkey is £415-420 per tonne cfr, [so] mills will not want to pay any higher.”

A supplier in the Baltic Sea region, meanwhile, told Fastmarkets it had a cargo on offer at around £425 per tonne cfr on HMS 1&2 (80:20) basis.