Turkey ferrous: Price up on six deals

  • Market: Metals
  • 07/04/21

The Turkish scrap import price increased significantly today on six deals concluded mid-week as the global steel complex continued to strengthen and domestic rebar sales in Turkey picked up.

The Argus daily HMS 1/2 80:20 cfr Turkey steel scrap assessment increased $8.90/t to $432.40/t cfr.

A Russian supplier was heard to sell HMS 1/2 80:20 at $428/t cfr Iskenderun for May shipment.

A continental European supplier was heard to sell 20,000t of HMS 1/2 80:20, 11,000t of shred, 8,000t of bonus and 2,000t of busheling at an average price of $433/t cfr Izmir for May shipment.

A second continental European supplier was heard to sell 10,000t of HMS 1/2 80:20 at $431/t and 5,000t of bonus at $441/t cfr Samsun for May shipment. The price level is significantly higher than the other continental European sale, potentially indicating the lack of suitable offers for this buyer but also potentially the added freight to get to Samsun compared to other Turkish destinations like Marmara, particularly for a cargo of only 15,000t.

A US supplier was heard to sell HMS 1/2 80:20 at $435/t and shred at $445/t cfr Marmara for May shipment, indicating the $10/t spread returning between HMS 1/2 80:20 and shred prices.

A second US supplier was heard to sell 13,000t of HMS 1/2 80:20, 15,000t of shred and 3,000t of bonus at an average price of $439/t cfr Samsun for May shipment.

A Baltic supplier was heard to sell 16,000t of HMS 1/2 80:20, 8,500t of shred, 4,500t of bonus, 3,500t of rail road scrap and 2,500t of a mix of busheling and new cuttings at an average price of $436/t cfr Iskenderun for May shipment.

A total of 11 deep-sea cargoes have been recorded for May shipment so far. A total of 33 cargoes were recorded for April shipment although some of these had latest 5 May shipment assigned.

The jump in the Turkish scrap price today brought the market more closely into line with the stronger global steel price dynamics that have emerged over the past two weeks.

Shanghai domestic rebar prices have increased Yn350/t, around $54/t, during the period since mid-March in which Argus' cfr Turkey steel scrap assessment has increased $17.40/t from $415/t cfr to $432.40/t cfr today. This indicates a significant amount of room for scrap import prices to increase a lot further. The pace of the increase will very much depend on how many scrap offers mills receive in the next day or two.

Some deep-sea scrap suppliers only targeted sales today at a maximum of $435/t cfr Turkey for premium HMS 1/2 80:20 despite the strength of other scrap markets and the Chinese steel complex, which indicates the pace of any further Turkish scrap price increase is not yet likely to accelerate rapidly. Any sharp increase in Turkish demand could jeopardise the margins of several deep-sea scrap suppliers from the UK and continental Europe which have made multiple sales in the past two weeks, because of the effect strengthening global demand would have on dockside purchasing prices.

The move above $430/t renewed discussion among some market participants as to why many scrap suppliers were content to sell in a low to mid-$420s/t last week after a US sale was heard done at $430/t on 29 March, particularly given the strength of Turkish scrap-steel margins at the time. At least eight deep-sea and short-sea deals were concluded at lower equivalent prices than that US sale on 29 March. And many suppliers sold at around $415/t cfr Turkey a week prior.

But the depreciation of the euro against the US dollar combined with weaker Turkish domestic rebar sales provided ample basis for a temporary downward correction in some scrap deal prices to Turkey last week. Both of those pressures have disappeared in the past two days.

The euro continued to appreciate against the US dollar today having changed direction at the start of this week, reaching almost EUR1.19:$1 as of 15:45 BST.

And Turkish domestic rebar demand significantly increased today and yesterday. Argus reported since the second week of March that domestic rebar demand would likely increase in Turkey in the first week of April.

A Marmara mill sold 5,000-7,000t of rebar locally at $625/t ex-works excluding VAT today. A second Marmara mill closed sales early in the day. A third Marmara mill offered $610/t ex-works in the Biga region, indicating that it will likely have attracted even stronger demand.

Most mills preferred not to sell large volume for the moment because of how strong the demand has become. Turkish mills are set make multiple export and domestic rebar sales in the coming days at increasingly higher price levels. Turkish export rebar prices have only increased $10/t during the time Chinese domestic rebar prices have increased $54/t, which means Turkish offers into regions such as southeast Asia will be extremely competitive.

Short-sea scrap offers to Turkey increased today after lower-priced deals were done at the start of the week, with Romanian and Bulgarian HMS 1/2 80:20 offered at $415/t cif Marmara today.

The Argus daily A3 cif Marmara steel scrap assessment increased $8.50/t to $412.50/t.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
28/03/24

Crane barge arriving at Baltimore bridge tonight

Crane barge arriving at Baltimore bridge tonight

Houston, 28 March (Argus) — The first major piece of equipment capable of beginning to clear the blocked Port of Baltimore, Maryland, is expected to arrive onsite tonight. The Chesapeake 1000 crane barge, capable of lifting 1,000 short tons with its a 231ft-long boom, is expected to arrive at the site of the collapsed Francis Scott Key Bridge near Baltimore at 11pm ET on 28 March, the US Coast Guard (USCG) told Argus . Both the crane and the tug pulling it, Atlantic Enterprise , are owned by Donjon Marine. It is currently the only crane on route to the collapsed bridge, the USCG said. There is no official timetable for the reopening of the port after the Interstate 695 highway bridge over the Patapsco River was hit in the early hours of 26 March by a container ship and collapsed, with the debris and ship blocking the waterway. The operator of the ship, Maersk, has contracted with marine salvage company Resolve Marine to refloat the vessel and remove it from the area, according to the USCG. It is not clear who has contracted for the Chesapeake 1000. Despite the inbound crane, it could take weeks or even months to clear debris and reopen the waterway under the collapsed bridge according to a engineering professor at the nearby Johns Hopkins University. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Read more
News

'Weeks, months' to reopen Baltimore waterway: professor


28/03/24
News
28/03/24

'Weeks, months' to reopen Baltimore waterway: professor

Houston, 28 March (Argus) — It could take weeks or even months to clear debris and reopen the waterway under the collapsed Francis Scott Key Bridge in Baltimore, Maryland, according to a engineering professor at the nearby Johns Hopkins University. As of Wednesday, there was no official timetable for the reopening of the Port of Baltimore after a major highway bridge over the Patapsco River was hit in the early hours of 26 March by a container ship and collapsed, with the debris and ship blocking the waterway. "I'd be shocked if it's weeks, but I don't think it'll take even a year" to clear the waterway, structural engineer and Johns Hopkins professor Benjamin Schafer said Wednesday. He expects the rebuild of the bridge to take significantly longer. "I've lived through quite a few civil infrastructure projects and they're rarely less than 10 years. So I think that's what we're looking at," Schafer said. He noted that it took five years to build the original Francis Scott Key Bridge and seven years to repair the Sunshine Skyway Bridge in Tampa Bay, Florida, after a similar collapse in 1980. Still, "this is definitely not a national supply chain crisis," John Hopkins operations management professor Tinglong Dai said Wednesday. "The effect will be mostly local, mostly minimal and mostly temporary." The bridge collapse and port closure is also unlikely to trigger a global supply chain crisis, he said. The Port of Baltimore is an important but "niche" port specializing in automobile imports and exports, Dai added. "The supply chain has evolved...I have already seen a lot of rerouting happening." Automakers started adjusting their supply routes away from the top port for US vehicle imports the day of the collapse, including General Motors, Ford and Mercedes-Benz. Baltimore is also a major port for coal exports, which may start to shift to terminals to the south in Hampton Roads, Virginia. Freight rates for ships that carry coal could see increases in global markets Other commodities like asphalt and caustic soda that move through the port will see challenges, while organic agriculture imports may see less problems due to seasonal flows. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Europe plate: Imports weigh on EU prices


28/03/24
News
28/03/24

Europe plate: Imports weigh on EU prices

London, 28 March (Argus) — Plate prices in Europe tumbled this week on increased import activity, which has pushed European producers to adjust their offers down to remain competitive. The Argus fortnightly Italian plate assessment dropped by €22.50/t to €730/t ex-works today for S235 grades, while the northwest European plate assessment for the same specifications also dropped by €15/t to €765/t. In the south, for S275 material, re-rollers were heard quoting €740-750/t to small customers, with €720-730/t possible for larger volumes. The market remained split between suppliers willing to drop to the low €700s/t to collect orders, and others that preferred to remain firm at €740-750/t and wait for after the Easter holidays to see how the market develops. Two re-rollers confirmed this week that they are mulling extending their Easter break by a few days owing to weak purchasing activity in the market. The level of €710/t ex-works for S275 was also reported available for orders of 1,000t and above, but this could not be verified. Buying activity over the past two weeks remained poor, as market participants are purchasing what they need with no restocking activity occurring. A slight drop in slab prices has contributed to lower plate prices. Deliveries for the Italian domestic market remain for late April for commodity grades. To the rest of Europe, Italian producers were heard offering around €750/t on a ex-works basis for S235 material, without collecting any tonnage. One source said there were offers as high as €760-770/t ex-works Italy. In northern Europe, one mill was reported concluding sales to end-users working in the shipbuilding industry at €750-770 ex-works for S355 grades. The same producer tabled offers at around €780/t, but was quick to offer discounts. Orders from the supplier are expected to be delivered in six to seven weeks. One source estimated that for S235, integrated mills would be offering close to €780-800/t ex-works, while from re-rollers located in the Benelux area €750/t ex-works for the same grade could be easily achieved. One central European mill was also heard available to sell at €790-810/t ex-works for S235. Producers in the northwest are operating on April to May delivery depending on the mill and the product requested. Market participants agree that a rebound in market activity is only expected towards the latter part of April. On imports, over the past couple of weeks, Indonesian material was purchased by buyers across the continent, especially in southern Europe at €640/t cif levels for S275. One source estimated that sales from Indonesia totalled close to 60,000t over the past month. After this activity, Indonesian material was not reported available over the past seven days. One deal was also concluded this week at €710/t cfr north EU, for South Korean S355 material. From South Korea, offers for S275 were estimated over the €660/t cif Italy level this week, with no deals concluded. Indian material was offered at $710-720/t cfr Italy for S275, while one trader offered the same origin from port, free on truck at €730/t for S355. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Turkey rebar: Market muted ahead of elections


28/03/24
News
28/03/24

Turkey rebar: Market muted ahead of elections

London, 28 March (Argus) — Turkish rebar prices were stable today, without a great deal of urgency shown by export buyers following a sustained uptick in scrap prices over the past few days. The domestic market remained subdued, as construction demand is still constrained by high borrowing costs and the ongoing depreciation of the domestic currency. Argus ' daily Turkish export assessment for rebar was unchanged at $590/t fob, with larger cargoes still available at this level. European, mostly Balkan, buyers have been making enquiries this week, with scrap prices inching steadily upwards over the past three weeks. But buyers have mostly been checking prices, and trade has remained thin. Rebar indications from suppliers were in a $590-605/t fob range, with most suppliers expecting at least $595/t fob. In the wire rod segment, material was available in a range of $605-625/t fob. The weekly wire rod assessment increased by $5/t to $600/t fob Turkey. In the domestic market, offers from most mills in the Marmara and Iskenderun regions were firm in a range of $610-620/t ex-works excluding value-added tax (VAT). But material remains available from Izmir mills and one Marmara mill at $595-600/t ex-works. While some buyers have made purchases in the run-up to the municipal elections on 30 March, restocking has been lacklustre, with a lack of firm signals from the construction sector. Argus ' daily Turkish domestic rebar assessment was unchanged at $600/t ex-works excluding VAT, with the lira equivalent also unchanged at TL23,4000/t ex-works including VAT. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Taiwan scrap imports fall 13pc on year in February


28/03/24
News
28/03/24

Taiwan scrap imports fall 13pc on year in February

Singapore, 28 March (Argus) — Taiwan's ferrous scrap imports fell on the year in February, reflecting rising prices, subdued activity during the holiday period and high stocks. Ferrous scrap imports totalled 218,887t, down by 21.3pc on the month and 13.2pc on the year, customs data showed. Trade sources attributed the decline to rising seaborne scrap prices in November and December. Trade sources said lower bookings were expected given the lunar new year holiday in Taiwan on 8-14 February, with mills likely to have been prudent in their procurement since November as delivery of containerised scrap usually takes 8-10 weeks from the signing of an agreement. The US remained Taiwan's top ferrous scrap supplier in February, providing 81,249t, although this was down by 32.6pc on January and 25.1pc on the year. Ferrous scrap imports from Japan fell by 10.3pc on the month and 15pc on the year to 55,510t in February. Imports from Dominican Republic rose by 7.1pc on the month and 16.9pc year on year to 17,563t. Scrap supply from Australia fell by 47.8pc year on year to 9,921t. Trade sources said underwhelming fundamentals in Asia meant Australian sellers focused on south Asia, where they could achieve stronger margins. Looking ahead, a slowing construction sector could mean lower scrap imports. "The shortage of manpower and rising building material costs have impacted the initiation pace of new construction projects," the Taiwan Institute of Economic Research said on 25 March. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more