The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) increased by $2.73/mt to $308.14/mt cfr on Thursday, with sellers pushing for a lot higher.
Scrap suppliers refrained from making any firm offers as soaring prices for export billet and rebar have led many to believe $315-320/mt cfr will be achievable soon.
Market participants said the estimated bid-offer range of $305-310/mt cfr on Thursday is eroding fast with suppliers now more openly pushing for $315-320/mt cfr. As a result, the market hit a standstill with buyers not prepared to make big price moves yet.
Still, buyers are aggressively seeking supply and deals are expected to conclude in the coming days. Robust demand for Turkish billet sent export prices soaring to $440/mt fob but billet supply has dried up. This has pushed export rebar offers rising to $480-490/mt fob today, which leaves enough on the spread for scrap suppliers to push for higher prices.
Asian bulk markets have also seen a rapid price increase.
A bulk vessel traded into Bangladesh earlier this week at $335/mt cfr for HMS, and prices have already increased by $10/mt since the booking.
Bulk shred into India is being negotiated in the range of $345-350/mt cfr, bulk HMS into Vietnam is being offered at $335/mt cfr range which is up $8/mt from a sale from Australia barely a week earlier, and bulk shred into Thailand is being negotiated at $335-340/mt cfr.
South Korean mills looking for bulk scrap will have fewer regions to source from since Japan has increased its volumes to Bangladesh and eastern Russia supply has dried up. Japan booked a 10,000mt bulk sale to Bangladesh from material booked through the Kanto tender.