The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) rose by $1.66/mt to $254.63/mt cfr on Tuesday as scrap bookings continued.
New deals were expectedly reported in the Turkish ferrous scrap market as buyers were active from the beginning of the week. Some negotiations are still in progress as mills are interested to book more cargoes at $254-255/mt cfr for HMS 1&2 (80:20) from the USA or the Baltic region, while suppliers target higher levels because of demand from alternative outlets.
On Tuesday, an Iskenderun-based mill purchased 21,000mt of HMS 1&2 (90:10) at $259/mt cfr, 4,000mt of shredded scrap at $261/mt cfr and 5,000mt of P&S 5ft at $266/mt cfr from the USA. The cargo is due to be shipped before July 25.
On June 1, an Izmir-based mill bought shredded scrap at $259.50/mt cfr and bonus material at $264.50/mt cfr from the USA. On the same day, another Izmir-based mill agreed to pay $254/mt cfr for HMS 1&2 (80:20) and $264/mt cfr for bonus scrap from the Baltic region.
Details of a sale from Canada were reported on Tuesday, but the booking was done late last week. A Karadeniz-based mill closed a deal at an average price of $261.50/mt cfr for 20,000mt of HMS 1&2 (95:5), 18,000mt of shredded scrap and 12,000mt of P&S 5ft.
Two transactions for scrap were fixed at alternative outlets, supporting firm pricing, Davis Index learnt. An exporter from the USA sold 32,000mt of shredded scrap at $282.50/mt cfr to Pakistan early in June. A US cargo, consisting of 10,000mt of HMS 1&2 (80:20) and 20,000mt of shredded scrap, was booked at $280/mt cfr in India late in May.
Rebar sales fuel demand for scrap in Turkey
There were some rebar sales in Turkey’s domestic market. However, spot prices declined by TRY10-20/mt ($1.50-3/mt) across the country and settled in the range of TRY3,250-3,340/mt ex-works, including 18pc VAT, on Tuesday.
Export rebar prices in the market remained unchanged at $405-415/mt fob. According to market participants, there were some sales to Asia recently, but no more details were disclosed.
Export billet prices are also flat at $375/mt fob.
($1 = TRY6.72)