As the shortage in the short sea scrap supply continues, it is also exacerbated by sellers’ unwillingness to conclude deals amid the ongoing price rises recorded on the deep sea side.
SteelOrbis has learned that deals from Romania and Adriatic to Turkey’s Marmara region have been closed during the current week at $363/mt CFR for a total of 5,000 mt of HMS I/II 80:20 scrap. Prior to this information, SteelOrbis’ estimation for HMS I/II 80:20 scrap of this origin was in the range of $360-365/mt CFR. Market players believe that prices for this grade can increase up to $375/mt CFR in the coming round of bookings due to the influence of higher deep sea quotations.
Meanwhile, an ex-Rostov deal for 5,000 mt of A3 grade scrap has reportedly been sold to Turkey’s Bartin region at $395/mt CFR, though this transaction has not been confirmed by the seller or the buyer at the time of publication. According to market players, water levels in rivers in Russia have decreased as some straits that are used for transportation have frozen due to the harsh weather conditions, disrupting shipments. Also, domestic demand in Russia is still strong.
On the other hand, there have been two sales to Iskenderun from Cyprus and Israel for HMS I/II 75:25 scrap at $358/mt CIF and $360/mt CIF, respectively. Suppliers from these locations are now targeting higher levels for the coming round of bookings.
Under the current circumstances, the short sea scrap segment is expected to continue its upward trend in the coming period.
