Ferrous scrap hush follows hullabaloo

Global – The recent, mesmerising surge in steel scrap prices to way beyond US$ 300 per tonne for HMS I/II 80/20 shipments into Turkey was followed by almost complete silence, with Turkish mills booking not a single cargo from the deep-sea market for over a month.

But finally the market has now stirred, with Turkey making three deep-sea deals with suppliers in the USA and Europe. Earlier feedback from those at the sharp end of negotiations suggested that, on the resumption of trading, prices could be pitched as low as US$ 215 per tonne cfr for shipments of the 80/20 scrap mix from Northern Europe to Turkey.

In the event, the decline from early-May values was kept within US$ 100 per tonne. Going back to early May, Turkey was snapping up a US cargo of HMS I/II 80/20 and shredded at, respectively, US$ 334 and US$ 339 per tonne cfr.

But the shine was already beginning to fade from Chinese steel prices while iron ore values were also experiencing significant downward pressure. Mills from Turkey to Taiwan duly stepped back from the deep-sea scrap buying market to await further developments.

When the trading hiatus ended in the first full week of June, a US supplier secured a Turkish mill’s signature for HMS I/II 80/20 scrap at US$ 235 per tonne and shredded at US$ 240 while the bookings with Europe priced the 80/20 mix at US$ 10 or more cheaper.

The full version of Recycling International’s latest Ferrous market report will appear in its June issue.