Having slowed their purchases of deep sea
scrap, Turkish steel producers are seeking to buy short sea
scrap at price levels lower than deep sea
scrap quotations. Ex-Black Sea
scrap prices from Rostov to
Turkey are heard at $275/mt CFR, while Turkish steel mills are more likely to prefer prices at $270/mt CFR and lower for these
scrap cargos.
Meanwhile, deep sea offers from the US to
Turkey for HMS I/II 80:20
scrap are higher than $300/mt CFR. It is believed to be impossible for Turkish steelmakers to accept this price level under the current market circumstances. In the latest ex-Baltic
scrap deal concluded in
Turkey, the price of HMS I/II 80:20
scrap was at $286/mt CFR.
Turkish steel producers may consider cutting their production rates slightly but even then they will be forced to conclude purchases of deep sea
scrap since they have made very few purchases for February shipments. Considering the situation in the local US
scrap market and the price levels of ex-US
scrap offers to
Turkey, Turkish steel producers are expected to prefer ex-Baltic and ex-
Europe scrap deals for their deep sea
scrap needs.