The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) increased by $1.72/mt to $455.15/mt cfr on Friday amid a buying spree in the country.
Turkish mills purchased more than 10 deep-sea cargoes during the week, with half the volume scheduled to be shipped in March. Demand for the imported material remains high as producers require significant tonnages for April shipment (around 40 cargoes).
As a result, suppliers are bullish and believe that prices will breach the previous high, which was $482.5/mt cfr for HMS 1&2 (80:20) early in January. Soaring bulk freight rates are another driving factor, with 40,000mt-sized vessels now closing in on a $40/mt freight cost from New York to Turkey, up from $23/mt in January.
Baltic offers are now at around $460/mt cfr for HMS 1&2 (80:20), while one US exporter has offered HMS 1&2 (90:10) at $475/mt cfr.
The most recent contract in Turkey was signed between a Baltic recycler and a Marmara-based mill at $456/mt cfr for HMS 1&2 (80:20) on Feb 26, but further details were not available at the time of publication.
New transactions were also reported in the Azov-Black Sea basin where a supplier from Russia (Rostov-on-Don) sold A3 at $452/mt cfr Turkey and an exporter from Romania traded HMS 1&2 (80:20) at $440/mt cfr Turkey.
Asia bulk markets have also recorded significant gains in the past week with a US cargo into Vietnam concluding at above $460/mt cfr on a heavy melt basis. Bulk shred to Bangladesh is now on offer at $490-495/mt cfr, with bids at $480-485/mt cfr.
In Turkey’s domestic market, mills raised daily purchase prices for shipbreaking scrap by $10/mt to $415/mt delivered mill on Friday.
Scrap price increases have also been supported by rebar sales.
The daily domestic spot rebar prices in Turkey surged by TRY170-180/mt ($23-24/mt) to TRY5,600-5,640/mt ex-works, including 18pc VAT, on Friday, and exported rebar prices increased by $5/mt to $640-645/mt fob.
Icdas raised its local rebar prices by TRY190/mt and opened sales in Biga at TRY5,630/mt ex-works, including 18pc VAT, and in Istanbul at TRY5,710/mt ex-works, including 18pc VAT.
($1=TRY7.43)