Sentiment in the import scrap market in Turkey has been mainly negative at the beginning of the new week amid high levels of uncertainty. The estimated workable prices levels have slid, for short sea scrap specifically. For now, business is quiet as players prefer to watch the market situation.
On the short sea side, ex-Romania HMS I/II 80:20 is estimated at $260/mt CFR, versus $265-270/mt CFR mainly voiced last week. However, according to some sources, the bids for scrap of the mentioned origin may be heard at $255-258/mt CFR. In the meantime, the workable level for ex-Rostov HMS I/II 90:10 scrap is considered to be $260-265/mt CFR Marmara, while last week a deal was closed at $270/mt CFR from the same region, as SteelOrbis reported.
In the deep sea segment, the number of offers is scarce for now amid growing uncertainty in the market. While the latest deals for HMS I/II 80:20 were reported at $268/mt CFR ex-Baltic region, some sources doubt that sellers will be able to trade above $265/mt CFR, and some expect even lower levels than that in the coming transactions.
According to market sources questioned by SteelOrbis, scrap suppliers are maintaining a wait-and-see stance due to the recent developments, such as Turkish government’s new regulatory guide on ships arriving at Turkish ports, as well as the ongoing uncertainties regarding the spread of the coronavirus. In addition, some sellers are giving priority to meeting their commitments from previous contracts. Additionally, some concerns regarding the scrap collection process also exist. Sources say that in some supplying regions the scrap flow has slowed down or even stopped, which creates additional uncertainty in the market. It is expected that the pricing in the market will gain a bit more clarity this week.
