The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) remained unchanged at $397.50/mt cfr on Friday in a mixed market.
Three ferrous scrap bookings with significant differences in prices were reported to the market. A supplier from the UK sold HMS 1&2 (80:20) at $399/mt cfr and shredded scrap at $404/mt cfr to an Izmir-based mill, while another exporter from the UK closed a deal with an Iskenderun-based mill at $387/mt cfr for HMS 1&2 (80:20). Both UK deals were reportedly booked on Thursday. In a third deal, a Marmara-based mill purchased HMS 1&2 (80:20) at $380/mt cfr and bonus material at $390/mt cfr from Poland.
Opinions varied about the dates of booking, delivery timelines, and prevailing market conditions. Shortly after these deals were announced most suppliers and traders said that the prevailing market level for US-quality heavy melt was still at around $395-400/mt cfr Turkey. Demand has strengthened on the back of fresh billet and rebar sales and suppliers are confident their market has bottomed.
Still, a few mill buyers suggested that they would continue to push for levels of $380-385/mt cfr for US heavy melt and market participants feel deal making will likely hit a standstill if the current buyer vs seller positions hold.
The mixed sentiment for deep-sea cargoes spilled into the Azov-Black Sea basin too on Friday. Some mills insisted on lower prices for short-sea cargoes with bids at $376/mt cfr for HMS 1&2 (80:20) from Romania, while other mills bid at $400-402/mt cfr for A3 material from Russia (Rostov-on-Don).
Rebar sales continued their upward momentum in the Turkish domestic market and daily spot prices increased by TRY90/mt ($13/mt) from the lower end of the previous range to TRY4,870-4,900/mt ex-works, including 18pc VAT, on Friday. Turkish mills in Marmara, Izmir, and Iskenderun regions have sold multiple orders of 5,000-15,000mt of rebar on several days this week.
The daily export rebar price in Turkey remained unchanged at $600/mt fob on Friday.