<article><p class="lead">The Turkish scrap import price decreased significantly on Friday on a lower bid-offer spread and a US sale as high freight rates for steel exports and ample scrap availability combined to dominate short-term market fundamentals. </p><p>The <i>Argus</i> daily HMS 1/2 80:20 cfr Turkey steel scrap assessment decreased $6/t to $458.80/t. </p><p>Turkish mills gave bid indications at $450/t cfr for premium HMS 1/2 80:20 and continental European exporters were considering sales closer to these levels on Friday at the same time as a US supplier sold HMS 1/2 80:20 at $460/t cfr Turkey. </p><p>Continental European exporters have slowed down collection rates amid the weakening export sentiment and will look to try to finally persuade sub-suppliers to drop delivered dock prices for HMS 1/2 to a maximum €335/t next week. </p><p>Baltic exporters have largely missed the opportunity to sell in the past two weeks as they held off in expectation of a scrap price recovery. Consequently, there is now ample September shipment availability from this region despite those exporters also slowing down collection rates at the beginning of August. </p><p>One of those Baltic exporters was heard today to have sold a cargo to Turkey earlier this week at around $463-464/t cfr for HMS 1/2 80:20. A Samsun mill that bought a continental European cargo on 4 August was heard to book a Scandinavian cargo on the same day containing 17,000t of HMS 1/2 80:20, 8,000t of shred and 2,000t of P&amp;S at an average price of $471/t cfr. </p><p>Turkish mills are recorded to have booked 12 deep-sea cargoes for September shipment comprising four from the US cargoes, three from continental Europe, two from Scandinavia, two from Baltic Europe and one from Russia. This strong initial burst has limited build-up of urgent requirement and will allow Turkish buyers to put more pressure on scrap prices next week. </p><p>Turkish mills also look to bring down prices further because they are still experiencing issues in negotiations with distant overseas steel buyers because of high bulk freight rates. A Singapore bid at $740/t cfr on theoretical weight basis for Turkish rebar currently equates to $685-697/t fob on actual weight basis depending on whether a Turkish mill can ship 60,000t at around $65-70/t freight or 50,000t at $75/t freight. </p><p>Southeast Asia's restocking of Indian and UAE rebar in addition to the overall weakness of the Chinese domestic market this week indicates that bid levels for Turkish rebar are capped in the short term. Argus' daily fob Turkey steel rebar assessment decreased $7.50/t today to $697.50/t fob on actual weight basis. </p><p>Turkish mills say they cannot find $685/t fob workable based on where scrap prices sit today, although they are still maintaining their scrap-rebar margins through low-priced short-sea scrap purchases. The Argus daily HMS 1/2 80:20 (short-sea) cif Turkey steel scrap assessment was flat at $427.50/t on Friday. </p><p>Turkey's domestic rebar restocking this week looks to have only been a three-day cycle after the lira weakened to such a large extent against the US dollar during this period, stockists said. Turkey's domestic rebar restocking cycles have tended to only last three-four days in the past year based on market volatility. An Izmir mill was heard to sell tonnage again today however, although at the same USD level of yesterday at $685/t ex-works.</p></article>
