Following the ex-US scrap deal concluded earlier this week for HMS I/II 80:20 scrap at $287/mt CFR Iskenderun, an increase was anticipated in the short sea segment which has been realized in the bookings made since.
A total of 12,000-14,000 mt of ex-Adriatic short sea scrap has been sold to Turkey’s Marmara and Izmir regions with HMS I/II 80:20 scrap in these cargoes being in the range of $272-275/mt CFR. The numbers voiced earlier this week were at $268-270/mt CFR Marmara, which were recorded in deals concluded on Friday (October 9) and last Monday. However, the mood in the market has changed quickly after the ex-US booking mentioned above.
Market players state that Russian A3 grade scrap offers are currently at around $290/mt CFR Turkey, as domestic demand in Russia is still strong.
Meanwhile, short sea suppliers active in Cyprus and Israel are voicing their new target prices at $270/mt CIF Iskenderun. The previous sale from the region was concluded at $262.5/mt CIF Iskenderun.
Market players believe that short sea prices to Turkey have room to increase to $280/mt CFR for ex-Adriatic HMS I/II 80:20 scrap due to the positive sentiment in the market. Demand for short sea scrap is improving, according to sources.