Short sea scrap prices in Turkey have increased sharply over the past week, while sentiment is still positive in terms of quotations.
SteelOrbis has learned that HMS I/II 80:20 scrap from the Adriatic region and Romania has been sold to Turkey’s Marmara region in the range of $445-453/mt CFR, increasing by 7.54 percent week on week. As the lack of vessels strongly impacts the market, the ongoing grain season is not helping the current situation. Freight numbers are very volatile, while a source commented, “One cannot voice a freight level since it is all decided in the moment”. Also, Ukraine’s plan to ban scrap exports is creating uncertainties in the region. The last time Ukraine decided to ban scrap exports, the material already on ships was ordered to be unloaded. This previous experience is leading ships to stay away from Ukraine while the uncertainty continues, leading to disruptions for previously concluded contracts. One market player stated that the Ukrainian government is having a meeting tomorrow. If no announcement is made after it, Ukraine will probably wait until November 1 to ban scrap exports.
Meanwhile, the rising trend of deep sea quotations along with the expectations of a further rise on the short sea side is impacting supply. Sellers are in no rush to sell, while the demand received from Turkish mills is accelerating. With the shortage and disruptions observed on the short sea side, Turkey’s need for deep sea cargoes may also increase in the coming days.
On the other hand, a cargo of HMS I/II 75:25 scrap has been sold from Israel to Turkey at $430/mt CIF this week, $10/mt higher than in the previous week. However, the workable level for this material is considered to be at $445/mt CIF as of today, October 12, while suppliers are not willing to conclude new sales.