Thursday, December 30, 2010

DAILY SCRAP REPORT: Index surges as reports of new cargo bookings stun market

London 23 December 2010 16:20

MB’s Ferrous Scrap Index cfr Turkey shot up to $476.68 per tonne cfr Iskenderun on an HMS 1&2 (80:20) basis on Thursday after the market was stunned by reports of two unconfirmed cargoes booked at much higher prices.

The index increased by $14.81 on Wednesday’s figure after a flat product steelmaker bought two deep-sea cargoes, according to market participants. Neither the recycler nor the steelmaker has confirmed the cargoes.

One was 40,000 tonnes of material including HMS 1&2 (80:20) grade at $475 per tonne cfr, shredded material at $480, and bonus at $485.

The second booking consisted of 40,000 tonnes of HMS 1&2 (80:20) grade at $480 per tonne cfr, shredded grade at $485, and bonus at $490.

“I think it’s real – prices have been rising so quickly this month,” a merchant said.

But traders were not all convinced by reports.

“Those prices? Not yet,” one trader said. “The mill is trying to get up its finished product prices.”

“Flat product steelmakers can afford higher prices, but these are not realistic,” a second trader told MB.

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