The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) dropped by $3.25/mt to $425/mt cfr on Thursday as buyers remain inactive.
Most Turkish mills continued to postpone deep-sea cargo purchases in an attempt to push prices lower. Buyers’ current targets appear to be below $420/mt cfr for HMS 1&2 (80:20) from the USA and the Baltic region.
In Asian bulk markets, prices fell on two bookings of bulk shredded by mills in Bangladesh, that booked material from the US at $458-460/mt cfr for shredded scrap. This represents a $28/mt drop in daily Asian bulk prices. With freight rates off the West Coast continuing to soar exporter margins have been hammered on an fob basis.
Freight rates for 35,000mt sized loads from Los Angeles to Bangladesh have breached $80/mt which means that on an fob basis daily bulk prices fell by $43/mt to $371/mt fob Los Angeles for heavy melt.
Several Asian bulk buyers suggested that markets were at or close to a bottom following a $50/mt drop in prices over the past four weeks amid strong steel markets, and exporters beginning to push back given the doubling of freight rates.
Meanwhile, Turkish mills remain active in short-sea cargoes with fresh bookings from Romania at $380-385/mt cfr for HMS 1&2 (80:20). A Marmara-based mill was heard to purchase the same grade from Bulgaria at $375/mt dap.
Daily domestic spot rebar prices in Turkey declined by TRY50-80/mt ($7-11/mt) to TRY5,330-5,400/mt ex-works, including 18pc VAT on Thursday. Sales are being impacted by buyers insisting on lower prices following the downtrend in the ferrous scrap market.
Weekly exported rebar prices decreased by $5-15/mt to $630-640/mt fob on Thursday. Turkish mills have received several inquiries from Singapore, Hong Kong and Peru for May and June shipments, and negotiations are in progress.
($1=TRY7.30)