The Turkish scrap import price fell today on two US sales done yesterday to a Marmara mill for July shipment.
A US supplier was heard to sell HMS 1/2 80:20 at $500/t and shred at $520/t cfr Marmara.
A second US supplier was heard to sell the same grades at the same price levels to the same buyer.
Turkish steelmakers have bought 12 deep-sea cargoes in the past week, leaving only three or four mills that now may potentially buy one more July shipment cargo each.
The low demand for July shipment relative to the ample number of cargoes available for the period is putting downward pressure on import prices.
Four north American exporters all sold consecutively in a four-day period at the beginning of April to Turkey and the same pattern has occurred in the the past four business days in early June. Eight north American cargoes comprising around 300,000t are heard to have been sold to Turkey from 9 June to 14 June.
When the similar north American selling pattern occurred after the US domestic buy week in April, Turkish scrap import prices fell around $10/t during the middle of the month from the lowest level at which north American suppliers made sales before rebounding strongly at the end of the month.
The availability of July shipment scrap from Russia, the Baltic and continental Europe maintains some downward price pressure now that north America has filled a lot of Turkey’s remaining July shipment demand but prices will likely receive support when Turkish demand for August shipment material strengthens.
Continental European exporters are attempting to buy HMS 1/2 material at €355/t delivered to dock but are only receiving offers from sub-suppliers at €370/t in return. European exporters have consequently been seeking higher prices than their US counterparts from Turkey.
The prices at which Turkish mills have achieved rebar sales since the end of last week also gives mills impetus to maintain maximum bid levels of $500/t cfr for premium HMS 1/2 80:20 this week.
An Izmir mill was heard to sell 30,000t of rebar to north and central America at around $735/t fob on 11 June. Domestic rebar demand has temporarily peaked at $735/t ex-works excluding VAT this week and southeast Asian bids have not moved from $730/t fob Turkey after the Chinese steel market returned weaker today after yesterday’s national holiday. Mills are still targeting scrap-rebar spreads of $240/t, with spreads at around $235/t today, and know that southeast Asian buyers have limited non-Turkish options.
Turkish mills have lowered their demand for short-sea cargoes this week, showing no interest to pay $480/t cif Marmara for Romanian HMS 1/2 80:20 after having not been heard to pay this level last week.
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