Market sources state that freight costs in the Black Sea have continued to increase. With freight costs in the region reaching $30-32/mt, ex-Black Sea A3 scrap offers to Turkey have risen. Accordingly, ex-Rostov, Russia A3 scrap offers for Turkey are at $390/mt CFR, while Romanian A3 scrap offers for the same destination stand at $385/mt CFR.
Scrap availability shortages have been observed in the Black Sea region due to the harsher winter conditions, while short sea scrap demand in Turkey this week has remained on the low side. However, with deep sea scrap prices reaching $400/mt CFR and continuing to indicate an upward tendency, Turkish steelmakers, whose scrap stocks for January are still empty, are expected to evaluate short sea scrap offers and new deals will likely be concluded in the coming days.