DAILY STEEL SCRAP: Rebar exports support $9/tonne increase in Turkey scrap prices
Turkish deep-sea scrap import prices have rebounded once again with fresh bookings done following successful Turkish export rebar and billet sales, market participants said on Wednesday April 21.
A steel mill in the Iskenderun region booked a European cargo, comprising 22,500 tonnes of HMS 1&2 (80:20) and 12,500 tonnes of a mixture of plate and structural (P&S) and HMS 1 at an average price of $429 per tonne cfr.
Meanwhile, a steel mill in Northern Turkey booked a 27,000-28,000-tonne Baltic Sea cargo, comprising HMS 1&2 (80:20) at $427 per tonne, shredded at $432 per tonne and bonus at $437 per tonne cfr.
These compared with the previous deep-sea bookings done on Friday April 16 at $416-417 per tonne cfr for Europe-origin HMS 1&2 (80:20).
As a result, the daily scrap indices went up on Wednesday April 21.
Fastmarkets’ daily index for steel scrap, HMS 1&2 (80:20 mix), North Europe origin, cfr Turkey was calculated at $425.52 per tonne on April 21, up by $9.27 per tonne day on day.
And the daily index for steel scrap, HMS 1&2 (80:20 mix), US origin, cfr Turkey was $431.49 per tonne on Wednesday, also up by $9.27 per tonne day on day, leaving the premium for US material over European scrap at $5.97 per tonne.
Market participants attributed the increase to the latest rebar and billet sales Turkish mills secured in Southeast Asia and Latin America.
“The Turkish mills were not willing to pay higher prices for scrap earlier. However, the demand in the Latin America and Southeast Asia encouraged them to pay more for scrap. I heard the mill in northern Turkey, who bought the Baltic Sea cargo, sold 20,000 tonnes of billet to Peru,” a Turkish source said.
“Turkish local rebar market is very weak but the export market is comparatively stronger,” another Turkish source said.
Turkish rebar export offers were now standing at $650-660 per tonne fob on actual weight basis, compared with the $635 per tonne levels heard last week.
Fastmarkets’ weekly price for steel reinforcing bar (rebar), export, fob main port Turkey was $625-635 per tonne in the latest assessment on April 15, down from previous week’s $635-640 per tonne. The price will next be published on April 22.