Turkish scrap market still on hold

Buyers and sellers still maintain their tranquility in the Turkish scrap market which has already been dominated by silence for the last couple of weeks. As we mentioned in our previous analyses, Turkish scrap market is calm especially in terms of bookings ex-Europe, US and Baltic Sea, which we call “deep sea” scrap. Scrap bookings concluded in very limited quantities are far behind total demand and usually purchased tonnages. There is no buyer in the market; and not many offers from suppliers either. It is reported that there is only a few suppliers who have availability for prompt shipment and need to remove their material. It is heard that offers for HMS I/II 60:40 scrap, which have recently fallen to $264/mt CFR Turkish ports levels even cannot find any buyers. In fact, it may even not be possible to quote the actual price level in the market. Once the resistance between producers and suppliers is broken and booking reports start to be heard, actual market level will become clearer. We expect a price level of around $275-280/mt CFR in a possible HMS I/II 80:20 scrap booking; however, the developments in the market will probably determine the actual price refraction. There are various price levels heard for scrap offers ex-Black Sea. While a spot booking for a small tonnage has been concluded at $263/mt CFR Nemrut, a booking for higher tonnage has been concluded at $270/mt CFR Marmara level. There are suppliers offering scrap at this price range or over $270/mt CFR level, depending on their position. Moreover, the start of grain season in Black Sea has increased freight rates. On the side of suppliers, if Turkish producers do not conclude the expected bookings this week, it is commonly thought that they will start concluding bookings mainly for deep sea scrap next week by the latest. However, it should not be disregarded that suppliers, which may haste to liquidate their cargoes, the positions of which have already been taken, may become active again.