Posted on 01 Mar 2019
Turkey has booked a solitary deep-sea scrap import cargo this week from the US at what appears to be a slightly higher price on-week. However, market participants point to the consignment still being March shipment and commanding a high quality premium.
The cargo was for 10,000 tonnes of HMS 1&2 80:20 at $313/tonne cfr Turkey, 10,000t shredded at $318/t and 10,000t bonus at $323/t. This compares to the Baltic-origin cargo booked last week at $307/t for HMS 80:20, although many sources said at the time that most merchants were not prepared to accept such a low price. The previous US cargo, booked three weeks ago, was at $330/t cfr.
One European scrap supplier suggests the latest US cargo price is a reflection of a widening premium for US over Baltic material. “If anything, it shows a weakening of the market because the differential between US and Baltic scrap is $10,” he tells Kallanish. “I’m surprised it’s keeping up the way it’s doing,” he says, adding he expected prices to fall more rapidly. Another European merchant is more bullish, however, exclaiming, “…isn’t is a rebound from the last one?!”
Notwithstanding scrap price discrepancy, Turkish mills have lowered rebar export quotes to $480-490/t fob Turkey, although $475/t fob is said to be achievable. However, not a single tonnage has been heard sold at these levels.
One major Turkish mill is heard to have stopped its rebar mill due to the lack of demand, and is focusing on flat products. However, this could not be verified before deadline. Another mill is heard offering rebar to Singapore at $490/t cfr theoretical weight, which was confirmed by traders in Singapore but denied by the mill.
There are numerous bids coming in for Turkish billet at $440/t fob Turkey, but mills are not prepared to sell at below $450/t fob, according to Turkish traders.
