The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) rose by $3.21/mt to $337.68/mt cfr on Monday on fresh bookings and higher offers. A price increase in steel product sales also promoted the scrap price rise.
Turkish mills’ strong order books have encouraged them to continue ferrous scrap purchases. Thus, a Marmara-based mill closed a deal with a Belgian supplier at an average price of $332.50/mt cfr for 25,000mt of HMS 1&2 (75:25), 10,000mt of shredded scrap, and 5,000mt of bonus material during the weekend. The cargo is due to be shipped in the first half of January.
Another Marmara-based mill was heard to have reached an agreement with a Baltic exporter at around $338/mt cfr for HMS 1&2 (80:20) last week, but further details of the transaction were unavailable at the time of publication.
Scrap demand in Turkey still outpaces supply, as a result, sellers are pushing for a further price increase. US suppliers, especially, raised offers close to $350/mt cfr Turkey for HMS 1&2 (80:20). According to market participants, a Turkish mill and an American exporter were negotiating a transaction at around $342/mt cfr for HMS 1&2 (80:20), but it was not clear if the deal was finalized.
Steel product prices rise
The daily spot rebar prices in Turkey surged by TRY120-180/mt ($15-23/mt) to TRY4,600-4,700/mt ex-works on Monday. Icdas increased its local rebar prices by TRY140/mt ($18/mt) to TRY4,640/mt ex-works, while Bastug Metalurji raised them by TRY120/mt ($15/mt) to TRY4,630/mt ex-works. All domestic prices include 18pc VAT.
The daily exported rebar prices in Turkey remained in the range of $500-505/mt fob on Monday, but mills continued to target $510/mt fob in current negotiations.
A new billet sale was fixed in the Turkish domestic market. Thus, 25,000mt of semis changed hands at $480/mt ex-works in Iskenderun, by $10/mt up from previous amid strong demand.
($1 = TRY7.88)