The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) declined by $1.41/mt to $255/mt cfr on Monday on muted trading.

 

Turkish mills are checking ferrous scrap offers after a week of active bookings, now that they have some time to evaluate the availability of material while they figure out their purchasing strategy. Bids are reported at around $250/mt cfr for HMS 1&2 (80:20) from the USA or the Baltic region, though some exporters continue to target $260/mt cfr for this grade.

 

The next deal price will depend on the balance between scrap supply and demand, which remains unclear yet. Some mills still require cargoes for May shipment though buying activity in Turkey has decreased. However, cargo availability for May shipments remains limited and collections are slow despite some offers in the market. As a result, it remains to be seen if the market will favor bidders or sellers.

 

Turkish rebar sales are weak, but the domestic market is better than the export one for now. Local spot rebar prices continue to vary in the range of TRY3,300-3,370/mt ex-works, including 18pc VAT, on Monday, while export ones – at $415-420/mt fob.

 

In an attempt to support the steel industry and increase local production, consumption and employment, the Turkish government raised import duties on some steel products, effective from April 18 to July 15. These new duties will be applied to imports from countries excluding the EU and those having a free trade agreement with Turkey.

 

The new duties include products under HS code 7207 (mainly steel billet), which have been increased to 17pc from 12pc; products under HS code 7208 (mainly hot-rolled coils) increased to 14pc from 9pc; and products under HS code 7209 (mainly cold-rolled coils) raised to 15pc from 10pc. However, the inward processing regime remains valid and no duties will be applied in those cases.

 

($1 = TRY6.95)

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