Short sea scrap prices to Turkey have remained under pressure after the new fall, seen in the ex-Baltic transaction. As a result, suppliers have been resisting for some time, but in the end sold a few lots at reduced prices.
According to the market sources, mills from Izmir and Marmara regions closed three deals for HMS I/II 80:20 from Romania and Bulgaria at $230-231/mt CFR for a total of 9,000 mt to be shipped in September. As a result, scrap quotations of the mentioned origins decreased by $11-12/mt from the deals, previously reported on September 6.
Bids for the ex-Adriatic Sea HMS I/II 80:20 scrap were reported at $225-228/mt CFR, but no deals have been concluded just yet. Sources say that the sellers were mainly inactive in offers as the scrap allocation on the destination is a little tight; therefore they prefer to concentrate on the raw materials’ collection.
Business activity on Rostov destination remains quiet as there are some shipment problems, connected to the quota restriction, valid from September 1.
While most market players await prices to fall further, some believe that sellers might not give in. "There is demand for short sea scrap from the Turkish side, but bids are way too low for the sellers to accept them immediately according to their collection costs,” a source said.