Latest Turkish import ferrous scrap bookings push up prices
2017-03-08 14:21:03   source:

Turkish ferrous scrap import prices rose on Friday after two bookings indicated a higher base for trading.

S&P Global Platts assessed HMS I/II 80:20 at $288/mt on Friday, up $3 from Thursday based on the cargoes seen and expectations heard in the market.

Late Thursday, a Baltic booking was heard at $292/mt for HMS I/II 95:5 to an Iskenderun electric arc furnace-based producer.

Two different cargo sizes were heard, 10,000 mt and 25,000 mt from different sources in the market.

This normalized to a value of $287-$288/mt for premium 80:20, according to Platts.

The second cargo came from an EU scrap merchant, bought by another EAF-based producer in Iskenderun.

The booking contained 17,000 mt of 75:25, 5,000 mt of HMS1, 2,000 mt of bonus and 1,000 mt of busheling for an average of $282/mt.

A source close to the transaction said this was prompt shipment by the end of March.

Normalization placed this cargo at $284-$285/mt for 80:20, though sources in the market agreed that quality may be lower than other European suppliers.

This further corrected indicative value to $287-$288/mt for premium bookings.

A third cargo was mentioned by an agent for European merchants, but it was concluded as far back as nine to 10 days ago and could not be included in the assessment.

A Baltic seller booked to an Iskenderun EAF-based producer, selling 15,000 mt of 80:20 at $281/mt, 5,000 mt of 90:10 at $286/mt, 7,000 mt of shred at $286/mt and 5,000 mt of bonus at 291/mt.

Estimates of value from market sources trended higher than indications calculated from the bookings.

One agent put value at $295/mt Friday, believing it had already increased over the cargoes for Friday and next week.

A second agent agreed that value had to be considered at over $290/mt following the bookings.

“I remain firm in my opinion, scrap has to rise $15/mt at least,” a European trader said, placing workable trading value at $295-$300/mt for deep sea cargoes.

Some acceptance was felt from the mills, as a Turkish producer said that $290/mt was possible.

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