Although demand in the short sea scrap segment has improved in the current week, market players state that the lack of vessels has had a bigger impact on prices.
As Turkish mills have increased their price inquiries for Black Sea origin scrap, HMS I/II 80:20 scrap quotations are still in the range of $415-420/mt CFR Turkey, stable week on week. Some deals to Turkey’s Marmara, Iskenderun and Izmir regions have been concluded in this range from Romania and the Adriatic, SteelOrbis understands.
However, short sea delivery periods have extended from 10-15 days to around 30 days against the backdrop of disruptions in transportation. Also, some delays in deliveries of previous bookings have been experienced, while Turkish mills have been unable to compensate for the shortfall with other cargoes in the short sea scrap segment. Some market players have stated that the price increase observed in the local Turkish scrap market is partly caused by these delays, as well as the changes recorded in the exchange rate.
Meanwhile, demand for HMS I/II 75:25 scrap from Cyprus and Israel has also improved this week. Market players state that Israel was out of the market last week due to its holidays, though Israeli suppliers are not willing to cut their prices this week. Israeli sellers’ price ideas are at around $405/mt CIF Iskenderun and they are voicing their expectations of a price recovery in the coming week. “If one has a cargo in hand, they will ask for at least $410/mt CIF next week, leaving some room for negotiation,” one supplier stated, adding that the high number of price inquiries signals that Turkish mills are ready to buy.