Turkey continues to conclude deep sea scrap bookings for March shipments and the number of contracts signed by Turkish buyers for shipment in the month in question has already reached approximately 20-21.
SteelOrbis has learned that an ex-Netherlands deal was done by an Iskenderun-based producer at the end of last week for HMS I/II 80:20 scrap at $490/mt CFR and bonus grade scrap at $510/mt CFR. Previously, an ex-UK deal in Turkey had been closed at $491/mt CFR for the benchmark HMS I/II 80:20 scrap. Accordingly, ex-EU scrap prices have remained relatively stable.
The positive sentiment in Turkey’s import scrap market is stronger today as the first signals from China meet the initial expectations that it will make a positive return from its week-long holiday. Since business resumption will take time in China, a clearer picture will be seen towards the end of this week. SteelOrbis estimates that Turkey concluded eight deals for March shipments in January and then an additional 12 deals were closed in February for March shipment. Considering the monthly average number of deep sea cargoes closed by Turkey (35-40 depending on the tonnages in the cargoes), Turkey is expected to buy another 15-20 deep sea cargoes in the coming period for March shipment.
Meanwhile, the cuts in natural gas flow to industries in Turkey will come to an end tomorrow morning at 08.00 local Turkish time, Turkey’s Petroleum Pipeline Corporation (Botaş) announced. On January 20, the gas flow from Iran was disrupted amid technical problems and Turkey needed to initiate a 40 percent cut for manufacturers to secure gas flow to households, which was then adjusted to just a 20 percent cut on January 28 as the situation started to recover.