The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) dropped to $455.71/mt on Wednesday, down from $461.94/mt cfr a day prior, on lower bids and offers.
Most market participants speculated that levels are at or near bottoms as another surge in bulk freight rates means pre-shipping price levels are well below corresponding domestic market values. This will soon trigger a fight to prevent supply-side margin squeeze thereby cementing a prevailing bid-offer range of $450-465/mt cfr Turkey for US-grade HMS 1&2 (80:20) as a floor.
US bulk freight rates to Turkey have increased to a range of $44-47/mt depending on vessel size, up by $10/mt from a month ago when Turkish import prices were around $40/mt higher. The resulting $50/mt drop for exporters amid steady finished products markets is untenable, according to some exporters.
In Asian bulk markets, the bid-offer range for #1HMS to South Korea stood at $485-490/mt cfr Wednesday, with prices in Vietnam averaging $4-5/mt higher. Bulk freight rates into Asia have followed price increases similar to those off the West Coast with freights into far-flung markets like Bangladesh now above $85/mt for 35,000mt sized vessels.