Turkish mills have been showing stronger interest in short sea scrap bookings recently in order to eliminate some shortages in stocks. In the meantime, overall scrap supply remains limited. As a result, although the suppliers are not active in the market at the moment, market sources consider that short sea scrap price levels have increased, coming closer to deep sea prices.
In particular, Romania is estimated to have increased its indicative prices for HMS I/II 80:20 by $5-10/mt over the week to $230-235/mt CFR due to slower collection. Some suppliers, however, may have some allocation in hand, which could result in deals slightly below the mentioned indicative level. Bulgarian suppliers are currently out of the market due to the same reasons, sources report. For ex-Adriatic scrap, it is heard that scrap suppliers are preparing to offer at acceptable price levels, with the estimated price at $225-228/mt CFR for HMS I/II 80:20 scrap.
Ex-Rostov scrap suppliers, according to sources, are not in a position to sell below $230/mt CFR for A3 grade. “Until January, Russian suppliers will be not active in the market as they have very limited open positions. Russia will not be the main player for now,” one of the sources said.
HMS I/II 75:25 scrap from Israel is reportedly on offer at $220/mt CFR to Turkey, the level is not considered as workable by Turkish mills. In the meantime suppliers are not ready for downward revisions as they are largely concentrating on sufficient local sales.
As a result, although short sea suppliers have been largely inactive this week, the estimated level of offers for HMS I/II 80:20 is at $225-228/mt CFR, while the Turkish mills are said to be looking to book at not higher than $220-225/mt CFR, generally for prompt shipments.
In the current situation, the estimated level of short sea scrap prices is getting closer to the deep sea levels. According to the sources, US HMS I/II 80:20 sellers are looking for $230-235/mt CFR, Baltic suppliers are seeking $230/mt CFR and above, while the European suppliers are ready to deal at $225-230/mt CFR for the same grade.