The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) decreased by $1/mt to $266.13/mt cfr on Wednesday after most mills suspended further purchases.
Demand for imported ferrous scrap softened in Turkey as mills preferred to step back and evaluate their sales prospects after booking significant tonnages earlier this month. As a result, firm bids are missing despite a healthy supply of scrap. Offers are still being made with HMS 1&2 (80:20) from the USA available at $270/mt cfr and the same grade from Europe being offered at $265/mt cfr.
A booking of an American cargo was reported in Turkey on Wednesday, but the deal was finalized on June 15, making it, as many market participants believe, among the last transactions for July shipment. In this deal, an Iskenderun-based mill purchased 17,000mt of HMS 1&2 (80:20) at $267/mt cfr and 15,000mt of shredded scrap at $272/mt cfr from the USA.
Some Turkish steelmakers switched to local scrap bookings and raised purchase prices for it this week. In Izmir, purchase prices for shipbreaking scrap have increased by $2/mt to $260/mt delivered since June 15.
Rebar trading fades
Daily domestic rebar spot prices declined by TRY10/mt ($1/mt) in Izmir, by TRY20/mt ($3/mt) in Istanbul, and by TRY30/mt ($4/mt) in Karabuk but were flat in Iskenderun. As a result, the price range for the material settled at TRY3,430-3,480/mt ex-works, including 18pc VAT, on Wednesday.
Exported rebar and billet prices in the Turkish market were unchanged at $415-420/mt fob and at $395-405/mt fob, respectively. Some mills are testing the export market with higher offers, with no deals reported.
($1 = TRY6.86)