Fresh US-origin deals have taken Turkish scrap import prices below $340/tonne for the first time in 2018, while mills’ attempts to raise rebar export offers have failed to generate significant sales, market participants tell Kallanish.
Following scrap’s drop to $340/t last week, two US-origin cargoes have been heard concluded this week at lower prices. One had 30,000 tonnes of HMS 1&2 80:20 at $339/t cfr Turkey, 5,000t shredded at $349/t and 5,000t bonus at $354/t. The second had 10,000t HMS 80:20 at $337.75/t and 35,000t shredded at $347.75/t for August shipment. This represents the first time US scrap prices into Turkey have dropped below $340/t since November 2017.
Turkish steel traders say scrap is likely to drop further, with one hazarding a guess that it could soon hit $320/t, although a European scrap merchant says the $339/t deal was done after the $337.75/t cargo, indicating a rebound.
At the start of the week Turkish mills raised rebar export offers to $540-545/t fob following some sales at these levels to Bulgaria, Romania and Israel. One trader says mills also raised quotes because they believed they could benefit from the EU safeguard measures' implementation. However, demand in export markets remains thin and, following the further scrap reduction, rebar prices should also go down, according to traders.
“After these scrap deals I think the rebar price will go down below $540,” says one Turkish trader. Another observes that despite mills’ expectations to benefit from EU safeguards, “…nothing has happened. The Europeans are on holiday.”
In the CIS billet market, offers are heard at $500-505/t fob Black Sea, with some saying $495/t fob is available for Ukrainian material. One trader hears at least three cargoes were booked to Algeria in the past week, one from Ukraine at $506/t fob Black Sea, while another was heard concluded to Ethiopia.