The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) increased by $2.20/mt to $359.70/mt cfr on Tuesday after a sale from the Baltic region was reported.
An Iskenderun-based integrated steel mill purchased 24,000mt of HMS 1&2 (80:20) at $358/mt cfr, 6,000mt of bonus scrap at $368/mt cfr, and 1,500mt of rails at $373/mt cfr from Russia (St Petersburg) on Dec 1. The cargo is due to be shipped at the end of January or the beginning of February.
Negotiations with US suppliers continue in Turkey with no deals heard so far. Exporters are insisting on higher prices ranging between $360-365/mt cfr for HMS 1&2 (80:20) because of limited availability of the material and inquiries from other outlets like Egypt and some Asian countries. Moreover, US suppliers believe that Turkish mills should accept $360-365/mt cfr for scrap due to their current prices for steel products, which are rising.
Some Turkish mills have already started ferrous scrap bookings for February shipments, while some producers did not finish purchases for January shipment. According to market participants, Turkish steelmakers still require around 10 deep-sea cargoes for January shipment.
Turkey’s daily domestic spot rebar prices increased by TRY40-70/mt ($5-9/mt) to TRY4,920-4,980/mt ex-works, including 18pc VAT, on Tuesday as market remained busy. Icdas raised its local rebar prices by TRY80/mt ($10/mt) to TRY5,000/mt ex-works, including 18pc VAT.
The daily exported rebar prices in Turkey moved to $520-530/mt fob on Tuesday versus $520-525/mt fob on Monday. According to market participants, demand for rebar is currently better in the domestic market than at export destinations.
($1 = TRY7.85)