Another lively week in terms of demand is observed in Turkey’s import scrap market, also as reflected in the short sea segment. As deep sea prices are rising gradually, some mills are looking for more short sea cargoes to slow the price rise for prime grades and secure some tonnages from the short sea segment as they wait. On the other hand, the rising costs of Turkish steelmakers are exerting pressure on their margins. Negotiations between the Turkish Metal Union and the Turkish Metal Industrialists Union have led to an annual 65 percent increase in salaries on average.
SteelOrbis has learned that Romanian HMS I/II 80:20 scrap has been sold to Turkey in the range of $454-457/mt CFR this week. Workable levels for short sea HMS I/II 80:20 scrap from Romania were considered to be at $435-440/mt CFR last week. As demand for short sea scrap accelerates, the same cannot be said for sellers’ willingness to sell to Turkey amid their expectations of a further rise in prices. One market player stated that sellers are evaluating the availability of vessels and freight numbers before deciding to conclude deals as they experienced some difficulties in the past round of bookings. “Since they are trying to avoid being faced with unbalanced freight prices or delays in shipments, some are giving offers after finding available vessels,” the source commented. Another source reported that there are offers from Romania at around $460s/mt levels CFR now.
From the Adriatic region, prices are at around $455/mt CFR for HMS I/II 80:20 scrap to Turkey. While there are offers heard from Italy to Turkey for the same grade at $470s/mt CFR, these levels are not considered workable right now for buyers since they are almost similar to the latest ex-US bookings. “Despite the good quality of the material coming from Italy, buyers’ ideas for Italian HMS I/II 80:20 scrap are around the $460s/mt CFR,” a source commented.
Meanwhile, workable levels for HMS I/II 75:25 scrap from Cyprus and Israel are at around $440/mt CIF Iskenderun, though no deals have been done at this level yet. Buyers are asking for levels in the $430s/mt CIF, SteelOrbis has heard, but a seller stated that these levels are not acceptable for now.
