The depreciation of local steel plate prices and the fluctuation of the Turkish Lira have translated into a drop of USD 10 to USD 15 per LT in levels offered last week in Aliaga. A fact, which has consequently resulted in depriving end buyers from acquiring any of the market tonnage this week.
The appetite of end buyers remains strong since most of the ship recycling facilities operate at less than 40% of their capacity. In combination with the low supply of units, (which has persisted for the last few months), the demand for tonnage is expected to remain high in the short term.
While it remains to be seen how the other fundamentals (that are affecting pricing) are going to behave overall, we anticipate a quite summer for the Turkish buyers.
Source: steel guru. 17 June 2014