As the flow of ship vessels from the Pacific Ocean to the Atlantic continues after Trump’s decision to postpone the fees for Chinese-build vessels docking at US ports, Turkey continues to find opportunities to buy ex-US West Coast cargoes. Earlier this year, the Trump administration announced plans to impose fees on Chinese-built vessels in an effort to weaken China’s dominance in the global maritime industry and strengthen US shipbuilding. These so-called Section 301 penalties followed a US investigation that concluded that China’s dominance in the global maritime, logistics and shipbuilding sectors was driven by unfair practices.
SteelOrbis has heard that an ex-US scrap supplier has sold two cargoes to an Iskenderun-based Turkish steel producer with HMS I/II 80:20 scrap at $355.5/mt CFR and higher grades at $375.5/mt CFR. This level is similar to the previously closed ex-US East Coast deals. Market sources report that the freight for ex-US West Coast cargoes is lower than it should normally be as vessels are trying to find cargoes for the Mediterranean and to continue their journey to the Atlantic with other cargoes. “Unless vessel numbers are balanced between the oceans, these ex-US West Coast deals may continue. Normally, freight to Turkey is at around $65-70/mt from the US West Coast, but there are significant discounts right now,” an US-based source told SteelOrbis. As a result, the window opened for Turkish mills is still there unless scrap demand in Asia or the Indian subcontinent recovers.
Meanwhile, another Iskenderun-based mill has concluded an ex-UK booking for HMS I/II 80:20 scrap at $350/mt CFR, with shredded and bonus grades at $370/mt CFR. This price is on a par with SteelOrbis’ reference prices for ex-UK/EU HMS I/II 80:20 scrap in the range of $349-351/mt CFR.
There are not many offers in the market, though all offers still easily find buyers in Turkey as Turkish mills are anticipating the approaching holiday season in the supplier regions during December. “There are a number of buyers in the market. They are in no rush but are seeking cargoes for shipment in December or early January,” a European scrap supplier commented today, November 13. Another European supplier said that deep sea scrap prices have hit their peak and that all parties are happy with the current price levels. On the other hand, Turkey’s interest in short sea scrap cargoes is on the low side. “Since Turkish mills can easily find deep sea cargoes, now supported by tonnages from the US West Coast, they are exerting pressure on short sea scrap prices,” a Romanian scrap supplier said today. Turkey’s deep sea scrap market has started to follow a sideways trend since the beginning of the current week and is expected to continue to do so for now.
Lastly, an Iskenderun-based steel producer has concluded two ex-Cyprus bookings for HMS I/II 75:25 scrap at $335/mt CFR.