Turkish scrap rises further, rebar mills raise quotes

Posted on 05 July 2019

Source: Kallanish

Turkish deep-sea scrap import prices have increased progressively throughout the week to within touching distance of $300/tonne, but rebar mills have so far not been able to pass on the increased costs.

At the beginning of the week a UK supplier sold 22,000 tonnes of HMS 1&2 80:20 at $297.5/t cfr Turkey and 10,000t bonus at $307.5/t. A Baltic merchant simultaneously concluded for 29,000t of HMS 80:20 at $297.5/t and 6,000t bonus at $307.5/t. In mid-week a US supplier sold a cargo for first half of August shipment of HMS 80:20 at $299/t, shredded at $304/t and bonus at $309/t. This compares to deals last week at $293/t for HMS 80:20.

With iron ore prices rising to a new five-year high this week, there is support for scrap to push beyond $300/t, even if domestic Turkish steel demand is yet to show signs of improvement. Turkish mills have offset the latter factor with significant growth in exports of billet and wire rod, while latest figures show rebar exports surged to a seven-month high in May.

However, Turkish mills are yet to successfully pass the increased scrap cost on to their finished product sales prices. A domestic trader bought a quantity of rebar from a Turkish mill on Monday at $460-465/t fob Turkey, but since Tuesday mills have raised prices. “Rebar is now minimum $470/t fob, even [... the typically cheapest Turkish mill in the market] won’t go below in negotiations,” one Turkish trader tells Kallanish. “Buyers are resisting at $465/t fob for now.”

One good piece of news for Turkish mills this week has been Egypt’s decision to suspend its provisional billet safeguard duty. Although the safeguard investigation continues, this gives Turkish mills at least a temporary opportunity to ship billet to the North African nation, although they will face competition from CIS suppliers. 

«  Back

Copyright © 2016 SEASI Site. All Rights Reserved.