The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) significantly declined by $14/mt to $213.50/mt cfr on Thursday amid suspended trade.
Most Turkish mills have postponed purchasing ferrous scrap because they don’t have steel product orders as a result of COVID-19 spreading and their output reduction plans. Several mills have even asked scrap suppliers to delay their April cargo shipments until May.
There are no firm bids for scrap in the Turkish market. Mills don’t expect scrap prices to fall to $220/mt cfr anymore; instead, they believe scrap prices will fall to $200-210/mt cfr for HMS 1&2 (80:20) from the US and the Baltic region.
A Belgian exporter successfully found a buyer at an alternative outlet in Egypt on March 24 and sold HMS 1&2 (75:25) at $216/mt cfr and shredded scrap at $220/mt cfr. Considering the price of shredded scrap, HMS 1&2 (80:20) should cost $215/mt cfr Egypt or $213-214/mt cfr Turkey because Egypt-bound freights are $1-2/mt higher.
It was rumored that an American supplier traded HMS 1&2 (80:20) to Turkey at $210/mt cfr, however, it has since been denied. The rumored seller hasn’t made any offers, and most market participants believe the rumored buyer is not in the market for any cargo right now.
The price of Turkish rebar has continued trending downward because of low sales. Export rebar prices have fallen to $395-400/mt fob from $400-410/mt fob earlier in the week.
Local rebar spot prices decreased by TRY20/mt ($3/mt) in Istanbul, by TRY30/mt ($5/mt) in Izmir, and by TRY50/mt ($8/mt) in Iskenderun, but were unchanged in Karabuk. As a result, prices settled in the range of TRY2,900-2,980/mt ex-works, including 18pc VAT, on Thursday.
Icdas reduced local rebar prices by TRY60/mt ($9/mt) to TRY3,060/mt ex-works, including 18pc VAT, in Biga. Izmir Demir Celik cut prices by TRY50/mt ($8/mt) to TRY3,050/mt ex-works, including 18pc VAT.
Kardemir announced its domestic rebar price at TRY3,000.74/mt ex-works, including 18pc VAT, with 25pc advanced payment, 25pc within 30 days, 25pc within 60 days, and the remainder in 90 days for orders of 500mt and more.
($1 = TRY6.40)