DAILY SCRAP REPORT: Mills' booking frenzy moves market sideways

MB’s Daily Ferrous Scrap Index cfr Iskenderun slipped slightly to $445.61 per tonne on an HMS 1&2 (80:20) basis on Monday, falling $0.61 on Friday’s calculation of $446.22 after mills booked another eight cargoes late last week. 

Trading houses sold significant tonnages to Turkey late last week. 

One sold 25,000 tonnes of HMS 1&2 (80:20) to a second Turkish mill on Friday at $446 per tonne cfr. 

The same Turkish mill also booked from an EU scrap processor at $446 per tonne cfr for a second 25,000 tonne shipment of HMS 1&2 (80:20). 

A second trading house also sold 25,000 tonnes of HMS 1&2 (80:20) to another Turkish mill at $448 per tonne cfr Iskenderun earlier last week; the electric arc furnace mill involved made its second booking of the week, following its first on Thursday of 18,000 tonnes at $448 per tonne cfr. 

A third Turkish mill also booked two cargoes: one containing ex-US material, the other consisting of ex-Baltic scrap. 

The US cargo comprised 11,500 tonnes of HMS 1&2 (80:20), 11,500 tonnes of shredded and 2,000 tonnes of bonus at an average cost of $450 per tonne cfr. 

The second cargo, booked from a Baltic-based recycler, will contain 10,000 tonnes of A3 and bonus material, and was booked at $454 per tonne cfr. 

A fourth Turkish mill booked a cargo of ex-EU material including 25,000 tonnes of HMS 1&2 (75:25) at $436 per tonne cfr, and also 5,000 tonnes of shredded material at $441 per tonne cfr, according to market participants. 

Two further mills were involved in trade. 

One mill booked 36,000 tonnes of HMS 1&2 (80:20) ex-EU material at $446.5 per tonne cfr; the other mini-mill booked from an international recycler at $446 per tonne cfr for HMS 1&2 (80:20). 

Turkish mills, having succeeded in pushing scrap prices back to pre-January levels, are now waiting on increased demand from Chinese ferrous scrap import buyers. 

“We’re waiting for China to buy so prices for scrap will rise, and then our finished products will be able to strengthen too,” a steelmaker told MB. 

“Demand for wire rod particularly is good and we are exporting a lot to our local neighbours,” the steelmaker said.