As of today, SteelOrbis observes that there are few short sea scrap offers to Turkey. In particular, sellers from Ukraine and Russia prefer to stay out of the market.
Russian sellers are not giving any offers to Turkey due to the scrap export duty initiated by the government which entered into force on August 1. Ukrainian sellers state that their local scrap demand is very strong and similarly Ukraine has a huge export scrap duty, and so they do not need to cut their HMS I/II 80:20 scrap prices to Turkey. Meanwhile, market players state that supply from Bulgaria is low.
Recently, Romanian HMS I/II 80:20 scrap has been sold to Turkey in the range of $420-428/mt CFR, SteelOrbis understands. According to sources, demand for short sea scrap is also slow. At the end of July, Romanian HMS I/II 80:20 scrap was sold in deals to Turkey at $439/mt CFR, though the estimations for short sea scrap from Romania were around $430-432/mt CFR following the decreases recorded in the deep sea segment. The month-on-month change in prices recorded in the short sea segment has reached 6.3 percent in the latest deals.
The gap between short sea and deep sea scrap prices is still widening. With the deep sea benchmark HMS I/II 80:20 scrap price now in the range of $455-464/mt CFR Turkey, the price difference has risen to $32-35/mt between short sea and deep sea scrap, whereas the price gap was traditionally $15/mt.