The steel prices in Aliaga have further depreciated this week, evidencing a continuing fall in the local market.
At the beginning of September, the local steel mills were purchasing steel from ship recycling facilities at levels close to USD 390 per MT. Last week, this rate had dropped to USD 370 per MT, which translates to an overall fall of USD 20 per MT for the first month of the final quarter of the year.
With such a negative fluctuation in local steel prices, Turkish breakers are uncertain as to whether they should continue putting efforts with aggressive speculation in order to acquire market tonnage and keep their facilities operating, or if they should just follow the negative trend of the prices offered by the rolling mills.
However, the latter does not appear to be a realistic solution for the Turkish buyers since they are already unable to prevent tonnage from being repositioned towards the Indian sub-continent shores, where prices remain much firm.
As such, the shores of Aliaga remain capable of attracting only small LDT units as the lack of large LDT quality tonnage for local yards persists.
Source: steel guru. 30 September 2014