The Turkish scrap import price decreased today after a total of 10 new deals were heard concluded last week, with several done at lower levels at the end of the week.
The Argus daily HMS 1/2 80:20 cfr Turkey steel scrap assessment decreased $2/t to $420.50/t cfr today.
A Venezuelan supplier sold two cargoes to an Iskenderun mill and an Izmir mill with HMS 1/2 80:20 priced at $415.50/t and $416/t cfr, respectively, at the end of last week. Both cargoes were for May shipment.
A continental European supplier was heard to sell HMS 1/2 80:20 at $417/t cfr Izmir for June shipment at the end of last week.
A second continental European supplier was heard to sell HMS 1/2 80:20 at $416/t cfr Izmir for end May shipment at the end of last week.
A third continental European supplier was heard to sell HMS 1/2 80:20 at $420/t cfr Izmir for May shipment in the middle of last week.
A fourth continental European supplier was heard to sell HMS 1/2 80:20 on a cfr Iskenderun basis at the end of last week for May shipment.
A Russian supplier was heard to sell a mixed cargo at an average price of $426/t cfr Izmir for May shipment early last week.
A second Russian supplier was heard to sell a cargo for late May shipment at the end of last week.
A Scandinavian supplier was heard to sell a mixed cargo for May shipment at an average of $430/t cfr Iskenderun in the middle of last week.
A Baltic supplier was heard to sell 10,000t to add to an existing cargo sale at $422/t cfr Iskenderun for May shipment.
This kind of concerted purchasing activity combined with rising steel and iron ore prices would usually place upward pressure on the Turkish scrap import price, but availability for May shipment is still comfortably matching Turkish mills' purchasing requirements.
Market expectation remains that price upside will not return until the trading of June shipment cargoes becomes more liquid at the end of April / beginning of May, similar to the trading pattern that occurred last month.
Sellers have been influenced by Turkish steelmakers' presentation of lower demand against strong supply despite the strong deal activity and prices could still become subject to additional downward pressure if mills again stepped back from the market today.
The availability of US and UK cargoes for May shipment, and how those sellers act in the next 10 days, will be highly influential on when Turkish scrap import prices recover again.
A total of 31 deep-sea cargoes are recorded traded for May shipment, with the total estimate around 38-39 cargoes. Turkish mills are estimated to now only need to buy six to seven more cargoes for May shipment.
The euro's appreciation against the US dollar – to €1.20: $1 this morning – provided some price support today. The exchange rate has not reached this level since 4 March.
A significant rise in Chinese domestic and export rebar prices today put Turkish mills in an ultra-competitive position in terms of rebar exports. Argus' daily fob Turkey steel rebar assessment increased $3/t to $640/t fob on higher offers in the market. Two large Turkish mills also increased their domestic rebar sales offers to the equivalent of $620/t ex-works today.
In the short-sea imported scrap market, Turkish mills gave bids for Romanian HMS 1/2 80:20 at $380-395/t cif Marmara at the end of last week.
The Argus daily A3 cif Marmara steel scrap assessment decreased $7.50/t to $395/t.
