Turkish mills’ demand for short sea scrap has remained high. However, it is heard that suppliers in Romania and the Adriatic region have decided to take a wait-and-see position, expecting a further rise in the deep sea scrap price.
As a result, Turkish mills have been buying from other alternative short sea sources to meet their prompt needs. According to market sources, a Georgian supplier sold to a Marmara region-based Turkish mill a cargo including 2,000 mt of HMS I/II 90:10 at $275/m CFR for December shipment. In addition, an ex-Israel scrap cargo has been purchased by a Turkish mill in the Iskenderun region. The cargo includes 5,000 mt of HMS I/II 75:25 scrap at $260/mt CFR. The ex-Israel deal price level has increased by $18/mt compared to the previous contract made about two weeks ago. These deals for short sea scrap illustrate that Turkish mills have been forced to accept the higher offer prices voiced by suppliers last week.
Market sources expect that suppliers in Romania and the Adriatic region will offer at higher prices in the near future following the recent increase in the deep sea price. Suppliers’ target for HMS I/II 80:20 is $280-285/mt CFR, SteelOrbis understands.