Posted on 14 Oct 2021
Turkish mills have further increased their domestic scrap buying prices this week, Kallanish notes. This is mainly because of the weakening lira and sharp increases seen in imported scrap prices over the last two weeks.
Mills are continuing to buy imported scrap at higher prices, meanwhile. Following the Baltic-origin booking at $463/tonne cfr Turkey for HMS 1&2 80:20 on Monday, a long steel mill bought another Baltic-origin cargo on Tuesday comprising 12,000 tonnes of HMS 1&2 80:20 at $470/t and 18,000t of shredded $490/t cfr. Another mill in the south bought EU-origin HMS 1&2 80:20 at $475.5/t cfr for prompt shipment, while two mills bought Baltic-origin HMS 1&2 80:20 at $480/t and bonus grade at $495/t cfr. One mill meanwhile bought a 11,000t top-up cargo from the EU at $455/t cfr.
Consequently, premium HMS 1&2 80:20 prices in Turkey have recorded a $36/t on-week increase and a $46/t jump over two weeks.
Demand for scrap in Turkey remains strong. Most suppliers, however, are seen to have backed off while waiting for higher prices.
A Turkish mill tells Kallanish: “Whoever comes to the market with an offer is selling immediately. I don't know where we are heading to. With such increases in scrap, we are losing our chance to sell in the global market, specifically in Asia.”
The recovery in scrap prices has supported the revival of rebar demand in both domestic and export markets. Although no high-volume inquiry has yet been received and export demand lags behind domestic demand, buyers in major export destinations such as Yemen and Israel are seen concluding Turkish rebar deals. Some small-volume sales have been heard in Africa as well. With support from the domestic market and costlier scrap, rebar quotes have increased mostly to $720-730/t fob Turkey actual weight.
Rebar demand in the domestic market remained strong on Wednesday, while problems with supplying certain sizes continue to weigh. As a result of higher scrap prices and the weaker lira on Wednesday, domestic rebar prices increased further to $710-740/t ex-works, excluding VAT. Mills that opened sales at the low end of this range are seen to have closed sales by the afternoon. Billet prices, meanwhile, increased to $700/t ex-works.
Turkish shipbreaking scrap prices, meanwhile, have remained unchanged at $430-446/t delivered. An upward correction, however, is expected soon. The lira was at 9.08 per dollar on Wednesday.
Source:Kallanish
