Posted on 14 Sep 2018
Turkish scrap prices have inched down fractionally this week following five fresh deep-sea bookings. Turkish rebar mills struggled to find buyers in export markets meanwhile despite reverting to lower offers last week, market participants tell Kallanish.
Two of the scrap deals were from the US. The first was for HMS 1&2 80:20 at $319/tonne cfr Turkey, shredded at $324/t and P&S at $329/t. The second had 10,000t HMS 1&2 90:10 and 15,000t shredded at $324/t cfr average.
Two of the deals were from the Baltic – one had 15,000t shredded, 13,000t HMS 80:20, 3,000t bonus and 1,000t busheling at $330.5/t cfr average. The other had 15,000t HMS 80:20 at $318/t, 20,000t shredded at $323/t, 5,000t bonus at $328/t and 2,000t busheling at $333/t.
Mills have maintained last week’s rebar export offers of $510-515/t fob Turkey, but “… this week rebar is silent,” a Turkish mill source says. According to one trader, a Turkish mill sold 10,000t of rebar to Hong Kong at $500/t fob Turkey for December shipment, but this could not be verified before deadline. Mill sources argue this price is too low, as it gives a minimal billet-rebar spread with billet currently at $485/t ex-works. An Asian source says it could be a top-up tonnage to a previously-agreed cargo.
One trader says, however, that two mills are already making $505/t fob available for large cargoes.
In the domestic market, weak rebar demand continues to compound the pressure on Turkish mills, with prices pegged at $510-520/t ex-works.
