The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) increased by $3.49/mt to $284.47/mt cfr on Tuesday after three new deals were reported as buyers accepted higher prices.
Demand for imported ferrous scrap improved in the Turkish market as mills must purchase cargoes for September and October shipment. Mills bid lower to achieve reduced rates last week and a few European suppliers accepted lower prices, but other exporters refused to lower their offers amid tight supply. As a result, Turkish steelmakers had to accept higher prices this week.
A Marmara-based mill bought three cargoes on August 24-25. For the first cargo, A US exporter sold HMS 1&2 (80:20) at $287.50/mt cfr, shredded scrap at $292.50/mt cfr and bonus material at $297.50/mt cfr for shipment in the first half of October.
The second cargo was finalized with a scrap collector from Russia (St Petersburg) who closed the deal at $283/mt cfr for 24,500mt of HMS 1&2 (80:20) and at $293/mt cfr for 7,000mt of bonus material for September shipment. In the third deal, a supplier from Poland sold 35,000mt of HMS 1&2 (80:20) at $283/mt cfr, 1,500mt of bonus scrap at $293/mt cfr, and 1,500mt of busheling at $293/mt cfr for September shipment.
The price difference between US and European cargoes could widen in the next few bookings in Turkey because material is tight out of North America, while there is adequate supply from Europe.
Local rebar prices rise
Daily domestic rebar spot prices in Turkey increased by TRY30-50/mt ($4-7/mt) to TRY3,820-3,870/mt ex-works, including 18pc VAT, on Tuesday, while exported rebar prices remained unchanged at $435-440/mt fob.
($1 = TRY7.40)