Page 56 from: New issue out now!

market analysis

Brighter prospects as
freight rates pick up
Markets were rattled by Turkey’s military

engagement in Syria but that wasn’t enough

to deny higher cargo prices.

56

a u T h o r Robin Latchem

Turkey continues to lead the global
markets, with a change in direction
seen in October across the major trad-
ing markets resulting in higher prices
and a pick-up in trading activity. Prices
into Turkey dipped a further US$ 10
per tonne towards the end of
September with a lack of optimism on
the global markets, with several US
cargoes booking HMS I/II 80/20 for
US$ 233 per tonne, and then US$ 228
per tonne as the month came to a
close. A UK cargo of HMS I/II 80/20
reached US$ 220, which compares with

US$ 228 per tonne reported in the pre-
vious issue, while several Baltic cargoes
were in the range of US$ 220 – 223 per
tonne for the same grade of material,
all on a cfr basis.
As October began, several cargoes
were booked for US and Baltic origin
and all at US$ 226 per tonne. Fortunes
changed that month with prices consis-
tently increasing on a weekly basis with
cargoes at the start of the month rang-
ing from US$ 223 for UK HMS I/II
80/20, US$ 233 per tonne for US HMS
I/II 80/20 and US$ 234 per tonne for
Baltic HMS I/II 80/20, again all on a cfr
basis.
Military action between Turkey and
Syria spooked the markets, as did the
resulting political spat between the US
and Turkey which brought trading to a
standstill mid-month on fears of a 50%

tariff being repeated. But this was short
lived and cargo purchases resumed with
a Baltic cargo trading at US$ 242 per
tonne and one from the UK at US$ 245
per tonne. The market dipped towards
the end of October with a brief pause in
trading due to a public holiday in Turkey
before it resumed once more, closing
the month for HMS I/II 80/20 from the
UK at US$ 240 per tonne, European
HMS I/II 80/20 at US$ 238 per tonne,
Baltic cargoes at US$ 241 – 243 per
tonne and US HMS I/II 80/20 at US$
244 per tonne.
Gains continued into November and,
at the time of writing, cargoes from US
and Baltic sources had secured HMS I/
II 80/20 at around US$ 258 per tonne.

INDIA AND TAIWAN
The India scrap market continued its
losing streak at the end of September
with HMS I/II 80/20 at US$ 235 – 250
per tonne and this continued into
October, with reported cargoes of US$
230 – 245 per tonne. More material
was booked both before and after the
Diwali festival with prices moving to
US$ 235 – 255 to reflect this pick-up in
demand as the month ended. They
increased to US$ 240 – 260 per tonne
at the beginning of November with all
eyes on Turkey.
In Taiwan, prices moved down through-
out September following a lack of inter-
est for material, closing the month at
US$ 230, and entering October at the
US$ 220 level, although they gained
ground before the close of the month,
reaching US$ 235 following a lack of
available material, and rising in early
November past US$ 240 per tonne.

COMPETING COMMODITIES
China’s iron ore imports rose in
September for the third consecutive

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