Negotiations with Baltic region-based scrap suppliers have continued in Turkey, market sources have said, with Turkish mills interested in concluding purchases of some extra tonnages under contracts concluded earlier.
According to market sources, two Baltic region-based suppliers have sold extra tonnages under old contracts to an Izmir-based Turkish mill. One of the suppliers has added 15,000 mt of the raw material to a deal done earlier, with the price for this extra tonnage of HMS I/II 80:20 being assessed at $293/mt CFR, SteelOrbis has learned. The price agreed by the other Baltic-based supplier was the same, but the quantity was lower. The previous confirmed deal for ex-Baltic scrap in Turkey was done at $289.25/mt CFR on December 9. However, there have been rumours of a sale at slightly above $290/mt CFR after that.
Market players report that these days some Turkish steel mills have been looking for additional tonnages for their previous deals concluded for December shipments, because of the anticipated supply shortage for cargoes to be shipped in the first half of January. Scrap suppliers will have a freight cost advantage in such a situation, as the additional material will be shipped together with the scrap sold earlier, market sources told SteelOrbis.