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A European cargo kicked off the week for European scrap imports on Monday, showing some ambiguity in quality pricing spreads, but generally agreed by the market to be a reflection of stability.

S&P Global Platts assessed heavy melting scrap I/II 80:20 CFR Turkey at $230/mt, stable from Friday.

The cargo was sold by a Benelux merchant and bought by an EAF-based producer in Iskenderun. The cargo contained 12,500 mt of 75:25 and 12,500 mt of bonus, priced at an average of $227.50/mt. The seller in question typically maintains a differential of $15/mt between 75:25 and bonus grade material, pointing to individual prices of $220/mt and $235/mt respectively. This was normalized to $230/mt for 80:20.

The price spread was calculated by using the typical yield differential of 4.3% between HMS I/II 75:25 and 80:20 mixes. An agent in Turkey for European sellers also used the same calculations. Both a Turkish buyer and European trader saw the market steady at $230/mt during Monday.

Other sources were focused on the creeping climb of offer levels, both in Europe and the US. One European merchant put the market for 75:25 higher than the heard trade at $225-$227/mt based on collection prices.

"I expected the next 75:25 to go at just under $230. Everything was pointing to that, I think [they] panicked," a second European merchant said.

US offers were heard to climb further. A US trader put the last figures heard from bulk sellers circa $235/mt.

According to a European merchant, a period of restocking was underway for both scrap yards and Turkish producers. Iron ore slipped back slightly on Monday after a steady climb last week, but Chinese domestic prices carried on upwards, alongside billet, keeping both Chinese and CIS-origin material for re-rolling an uneconomic option stacked against scrap.