Short sea scrap prices in Turkey have indicated a significant rise over the past week amid the lack of supply, harsh winter conditions and also due to the sharp increases observed in the deep sea segment.
A total of 5,000 mt of HMS I/II 80:20 scrap has been sold to Turkey’s Marmara region this week from Bulgaria and Romania at $419/mt CFR and $424/mt CFR, respectively. Before these deals, the estimations for HMS I/II 80:20 scrap from these regions were in the range of $400-405/mt CFR Turkey. Market players believe that the prices have the potential to reach and exceed $430/mt CFR in the coming round of bookings. There is still demand for short sea scrap in Turkey, while suppliers are in no rush to conclude sales as they want to keep track of the increasing trend in the deep sea segment. The offers given to Turkey are for late January-early February, SteelOrbis understands.
While Russian suppliers do not expect a decrease in the short term in their export prices, one market player stated that Russian HMS I/II 90:10 scrap prices could reach $440/mt CFR Turkey in the coming period. As SteelOrbis mentioned before, local scrap demand is very strong in Russia and the sharp winter conditions are taking their toll on collection activities as well as shipments.
On the Mediterranean side, Cypriot and Israeli suppliers have concluded new sales for HMS I/II 75:25 scrap at $375/mt CIF Iskenderun and $395/mt CFR Nemrut Bay.