Following the uptrend of Turkey’s deep sea scrap procurement prices, short sea sellers to Turkey have also managed to close some deals at higher price levels.
SteelOrbis has learned that HMS I/II 80:20 scrap prices from Bulgaria, Romania and the Adriatic region have moved up from the previous levels of $415-420/mt CFR to $425-429/mt CFR Marmara and Bartin in the current week. As market sources report that demand is still being received from Turkish mills, sellers are in no rush to conclude new sales to Turkey amid expectations of a further rise in quotations in the coming period. A lack of vessels continues to be observed in the Black Sea, SteelOrbis understands, while the volatility of freight rates is still problematic.
Market players state that Ukraine’s plan to ban scrap exports may cause big disruptions since it is heard that the government plans to allow only ten days of loading for previously signed contracts. And with the Russian government evaluating the existing scrap export duty alongside a plan to change it to another but more general tax, there are uncertainties about the future supply of scrap from the region. The Ukrainian government is expected to sign its ban order today, October 6, some market players stated, though there has been no official statement at the time of the publication. In the first eight months of 2021, Turkey imported 361,211 mt of scrap from Ukraine, while the value of Ukrainian scrap exports to Turkey increased in the absence of Russia.
Meanwhile, the situation in relation to scrap supply from Cyprus and Israel is similar. Although sellers are in no rush to conclude sales to Turkey right now, a deal from Israel to Iskenderun has been closed at $420/mt CIF today, indicating a sharp rise from the $410/mt CIF level recorded at the end of last week.