In line with the ongoing increasing trend observed in the deep sea scrap segment, short sea scrap quotations to Turkey have increased in some deals concluded during the current week.
SteelOrbis has learned that approximately 17,000 mt of HMS I/II 80:20 scrap were sold from the Adriatic region and Romania to Turkey in the range of $325-328/mt CFR Izmir and close to the Marmara region at the beginning of the week. However, prices have moved up in line with the levels recorded on the deep sea side and the highest ex-Adriatic level recorded this week was $335/mt CFR Izmir for the same grade. Prior to this report, SteelOrbis’ predictions for short sea scrap were in the range of $328-330/mt CFR.
As deep sea scrap quotations continue to rise, short sea suppliers have taken a slight step back from giving offers due to the shortage on the supply side. Although offers are still heard from the Adriatic region and Romania, suppliers are in no rush to conclude sales during these market conditions, one market source stated, adding that the workable level for HMS I/II 80:20 scrap from the Romania and Adriatic to Turkey is currently considered to be around $340/mt CFR.
Additionally, current estimations for the workable price level for ex-Russia HMS I/II 85:15 scrap are at around $350-355/mt CFR. However, some market players state that offers have almost ceased from Russia.
Meanwhile, the workable levels for ex-Cyprus and ex-Israel HMS I/II 75:25 scrap are considered to be at $320/mt CIF Iskenderun, though no new deals at this level has been heard in the market. Some players state that suppliers in these locations are also in no rush to conclude any sales for similar reasons.
The expectations voiced regarding workable price levels indicate that the uptrend of short sea scrap prices is expected to continue in the coming period.