The daily Davis Index for bulk US-grade HMS 1&2 (80:20) rose by $6.69/mt on Monday to $433.13/mt cfr Turkey following an increase in bid-offer levels.
No fresh sales were reported at the time of publication, but offers from the US have firmed up to a range of $430-440/mt cfr, with offers from Europe ranging between $430-435/mt cfr for heavy melt.
Mills haven’t offered any firm bids yet and some acknowledged that it would difficult for new trades to conclude below $430/mt cfr given the overall price strength in steel markets. Mills that tested levels below $430/mt were immediately turned down.
Scrap suppliers are bullish given another increase in Turkish billet export prices, which concluded at $597-599/mt fob Turkey. Southeast Asian demand for rebar is also strong and market participants expect Turkish rebar export prices to rise further from the current $650/mt fob level.
Details of some short sea scrap sales to Turkey that concluded last week were released today. A3 scrap from Rostov-on-Don was booked at $407/mt cfr, while a Bulgarian supplier sold HMS 1&2 (80:20) at $402/mt cfr and bonus at $412/mt cfr. A shipment from Ukraine was booked at $408/mt cfr for HMS 1&2 (90:10).
Asian bulk demand picked up late last week with cargo sales to Thailand and Vietnam concluding at shredded scrap price levels of $470-472/mt cfr.