Last week, many ex-US scrap bookings were made in the Turkish market, while this week Turkish steel mills prefer short sea scrap instead of deep sea scrap and made several bookings of the former.
Although there are many suppliers giving deep sea scrap offers to the Turkish market, Turkish mills prefer to book small tonnages of short sea scrap instead of large tonnages of deep sea scrap as they are having a hard time concluding finished steel sales with high volumes and as Chinese rebar export prices have indicated a sharp decline. Another reason for Turkish mills to prefer short sea scrap, is that it provides certain advantages in terms of payment.
In the latest bookings in the Turkish market, ex-Adriatic HMS I/II 80:20 scrap was traded at $324-325/mt CFR, ex-Romania A3 scrap was traded at $325-327/mt CFR and Russian A3 scrap was transacted at $330-331/mt CFR. While deep sea scrap suppliers’ offers stand at $340/mt CFR, it is believed that they are willing to accept $338/mt CFR, which is last week’s price level; however, Turkish mills are unlikely to be willing to buy at these levels amid current market conditions.