Metal Bulletin’s Daily Ferrous Scrap Index was unchanged for a second day at $447.01 per tonne cfr Iskenderun on an HMS 1&2 (80:20) basis on Wednesday April 25, up from $446.86 a day earlier.
Offers from the USA and Romania at $450 per tonne cfr and above, and $440 cfr, respectively, boosted the index, yet no deals were confirmed on Wednesday.
There were more enquiries for Black Sea cargoes this morning, according to a merchant in Romania.
“There is a sudden demand this morning, especially for Black Sea scrap, from many buyers,” he said.
A mill source said offers from this region were at $437-440 per tonne cfr, but no cargoes had been sold so far.
A trader said mills were still looking to sell rebar instead of buying scrap, and was expecting prices for scrap to come down.
“The expectation is for the prices [of rebar] to reach $650 per tonne fob levels and this should force US [HMS 1&2] 80:20 to $440 [cfr] levels. At present, no-one is interested in buying a deep-sea cargo, as far as I know,” the trader said.
A second merchant disagreed with this, saying that mills had made bookings for rebar for the whole of May and that scrap prices will be close to unchanged when the next cargoes were sold.
“I think we will see pretty similar levels [for scrap] as [the] news says mills have booked all rebar and billet until end-May and are now selling [for] June,” the merchant said.