SteelOrbis observes that sentiment in Turkey’s short sea scrap market is now more positive as compared to Wednesday, June 23.
Following the relatively firm prices fixed in the latest ex-US deal, short sea sellers have also started to prefer waiting before concluding any new sales, adding they are in no rush as they expect prices to move up next week. There has been demand from Turkish mills for material, SteelOrbis understands, particularly in the last two days. As observed earlier this week, the gap between short sea and deep sea scrap prices has once again widened to untraditional levels, though with the new price indication from the deep sea side, HMS I/II 80:20 scrap prices from Romania and Bulgaria are estimated at around $445-450/mt CFR Turkey, versus $440-445/mt CFR fixed in deals in the first part of the current week.
Also, earlier this week, a Marmara-based Turkish mill has concluded a deal from Abkhazia in Georgia for HMS I/II 90:10 scrap at $445/mt CFR. Meanwhile, an Israel-based supplier has concluded another deal to the Iskenderun region for HMS I/II 75:25 scrap at $440/mt CIF.
Market players think that demand can revive further next week as Turkish mills still need to purchase deep and short sea scrap for August shipments. SteelOrbis also hears that deep sea scrap suppliers are aiming for $500/mt CFR and above in their sales to Turkey. Some market players state that even though the market may be silent at the beginning of the coming week, Turkish mills will start to feel the pressure of the approaching holidays - July 15 and the Feast of Sacrifice holiday on July 19-23.
