Turkish steel producers have been unable to secure short-sea scrap cargoes – which they have been seeking since last week – at desired prices.
While many scrap suppliers in Russia are still unlicensed to export, in other short-sea supplier markets collection prices remain high and suppliers are unable to meet Turkish producers’ desired price levels. With collection prices not lower than $190/tonne in Romania, suppliers cannot afford sales below $240/t cfr Turkey, which is too high for Turkish mills considering the latest deep-sea transaction prices.
A short-sea scrap supplier tells Kallanish: “Although Turkish mills’ demand is strong since last week, we are unable to give offers. Our suppliers are focused on collection to deliver earlier-booked cargoes. Prices in Turkey decreased but since demand in the local Romanian market has remained strong, collection prices have not fallen in line with Turkey. We cannot meet Turkish mills’ price expectations at $220-225/t cfr. Even $230/t is barely workable at the moment.”
The lack of supply in short-sea scrap has directed Turkish producers to deep-sea cargoes and caused deep-sea scrap suppliers to increase their quotes this week. US suppliers are heard to have offered HMS I/II 80:20 at $235/t cfr Turkey, $9/t higher compared to last week’s deals. Baltic suppliers’ quotes stand at $232-235/t cfr.
Although Turkish mills started the week with high scrap demand for both short-sea and deep-sea cargoes, they are observed to have since lost their appetite, especially for deep-sea material. This is due to the uncertainty in Turkey’s economy following the sharp devaluation of the lira on Monday. No scrap bookings have been heard so far this week.