Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) rose by $1/mt to $266.91/mt cfr on Friday.

 

Four more deals for deep-sea cargoes were reported in the Turkish market amid high buying activity. On June 11, an Iskenderun-based integrated steel mill purchased 22,000mt of HMS 1&2 (80:20) at $267/mt cfr and 10,000mt of bonus material at $277/mt cfr from Russia (St Petersburg). 

 

On June 10, an Izmir-based mill bought 25,000mt of HMS 1&2 (80:20) from Lithuania at $265/mt cfr. On the same day, an Iskenderun-based mill bought 18,000mt of HMS 1&2 (80:20) at $262/mt cfr from a UK-based supplier, while a Marmara-based mill closed a deal at $255/mt cfr for 13,500mt of HMS 1&2 (75:25) and at $270/mt cfr for 3,500mt of bonus scrap from another supplier from the UK.

 

Some transactions were also fixed in the Azov-Black Sea basin. On June 10-11, a Russian exporter sold A3 material at $264/mt cfr and at $265/mt cfr to the Karadeniz region.

 

Steelmakers in Turkey have already booked more than 1mn mt of ferrous scrap for July shipment. Most market participants believe that prices have peaked, and mills will step back next week because they have enough time complete their July shipments purchases at a slower pace. However, some sellers are of the opinion that Turkish mills will continue scrap purchases if steel products sales will remain active because of which, scrap prices could reach $270/mt cfr.

 

Turkish producers raised purchase prices for shipbreaking scrap by $3/mt to $255/mt delivered at the end of the week in the domestic market.

 

Domestic rebar sales volumes surge

Daily domestic rebar spot prices climbed by TRY20-30/mt ($3-4/mt) across Turkey to settle at TRY3,430-3,480/mt ex-works, including 18pc VAT, on Friday. After 10-15 days of active trading, the market slowed down, but is still firm.

 

Export rebar prices in Turkey remained unchanged at $415-420/mt fob.

 

The Turkish domestic billet market was busy too. Many sales were done at around $400/mt ex-works for prompt delivery during the week. As a result, export billet prices in Turkey rose by $5/mt at the upper end to $395-405/mt fob.

 

($1 = TRY6.84)

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