The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) decreased by $7.08/mt to $471.67/mt cfr on Friday as mills achieved lower prices in new bookings.
Turkish demand for imported ferrous scrap was low during the week, but two mills purchased some tonnages at lower prices. A Karadeniz-based producer bought a mixed composition cargo at an average price of $465/mt cfr from Denmark. Full details of the transaction were not available at the time of publication, but according to some sources, the new transaction was only an addition to the tonnages (around 12,000mt) to a previous deal between the buyer and seller.
An Iskenderun-based mill purchased two short-sea cargoes from Europe early in the week. The first deal was closed at $447/mt cfr for HMS 1&2 (80:20), while a second contract was signed at an average price of $442/mt cfr for shredded scrap and P&S 5 ft.
Turkish ferrous scrap importers will insist on lower prices next week, and some suppliers are expected to accept their terms. However, the number of offers will decrease as some exporters have already switched to alternative outlets. For example, several recyclers from the UK and Belgium were heard to have sold to Egypt this week. In another deal, a Scandinavian supplier reached an agreement with a buyer from South Europe at €380/mt cfr for HMS 1&2 (80:20) and €390/mt cfr for P&S 5 ft.
Most US scrap suppliers may simply withdraw their offers, which are no lower than $480/mt cfr for HMS 1&2 (80:20), to Turkey.
The daily domestic spot rebar prices in Turkey decreased by TRY30/mt ($4/mt) to TRY5,590-5,650/mt ex-works, including 18pc VAT, on Friday, while the daily exported rebar prices remained unchanged at $650/mt fob. According to market participants, there is some demand for Turkish rebar on export, especially in Asia, where Turkish mills are negotiating and targeting higher prices.