The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) increased by $13.07/mt to $220/mt cfr on Friday amid higher demand and reduced supply.
A few Turkish mills were in the market for ferrous scrap cargoes during the week, but couldn’t find any and had to increase their bids for HMS 1&2 (80:20) from the US or the Baltic region from $200/mt cfr to $210/mt cfr. Buying activity increased on low stocks by the end of the week, however, no deals were reported because there weren’t any offers.
Scrap availability is limited because collection around the globe has declined significantly, and most exporters have claimed they don’t have any offers. Some suppliers expect prices to rebound to $225-230/mt cfr for HMS 1&2 (80:20) from the US and Baltic region in the coming days.
There is also a lack of sellers in the Azov-Black Sea basin, and Turkish mills have expressed interest in short-sea cargoes. Suppliers have targeted minimum prices equal to the most recent deal, but buyers are still searching for lower prices. Within the last couple of days, an exporter from Rostov-on-Don sold HMS 1&2 (90:10) for $224/mt cfr Marmara, as reported by Davis Index yesterday.
A ferrous scrap sale from the US was disclosed on Friday in the Turkish market, but it actually occurred last week and, therefore, doesn’t reflect the market reality. An Iskenderun-based mill purchased 21,000mt of HMS 1&2 (90:10) and 5,000mt of shredded scrap at an average price of $218/mt cfr.
Trading in the Turkish rebar market renewed earlier in the week as inventory replenishment began, although it hasn’t finished. As a result, spot prices increased by TRY60-100/mt ($9-15/mt) across Turkey and settled in the range of TRY3,060-3,100/mt ex-works, including 18pc VAT, on Friday.
Icdas raised local rebar prices by TRY40/mt ($6/mt) to TRY3,080/mt ex-works, including 18pc VAT, in Biga.
($1 = TRY6.74)