The Turkish scrap import price edged down on Wednesday as continental European exporters' dockside bids started to get accepted at lower numbers, giving those exporters more encouragement to offer to Turkey at lower levels.
The Argus daily HMS 1/2 80:20 cfr Turkey steel scrap assessment decreased $1/t to $455.50/t cfr.
Netherlands exporters were able to pull down sub-suppliers' HMS 1/2 prices below €335/t delivered to dock for sizeable tonnages this morning. Continental European exporters further south were able to buy 100-200t packages below €330/t delivered to dock starting today.
For mid-September shipment sales to Turkey one month away, and at an exchange rate of €1.172:$1 this morning, continental European exporters have been further encouraged to consider Turkish mills' bids at the equivalent of $450/t cfr for premium HMS 1/2 80:20.
The euro started to appreciate against the US dollar in the afternoon, standing at €1.174:$1 at 16:00 BST.
Continental European exporters that have already sold for early September shipment, at around $460/t cfr Turkey for HMS 1/2, will not be overly impacted by the fact that some of their stock for these cargoes was purchased €340/t delivered to dock. But European exporters that have not yet sold September shipment are in a difficult position because they have accumulated higher-priced stock relative to what is now a weaker Turkish import price.
One continental European supplier today offered $455/t cfr Turkey for HMS 1/2 80:20. Baltic exporters were heard to offer $462/t cfr Turkey for HMS 1/2 80:20.
Turkish mills were boosted on Wednesday by the second consecutive day of Chinese domestic steel price increases. Shanghai mainstream hot-rolled coil (HRC) ex-warehouse prices rose by Yn40/t today to Yn5,840/t between morning and evening, although weak demand and high inventory still prevail. October HRC futures rose by 1.65pc to Yn5,901/t. Shanghai mainstream rebar price rose by Yn30/t to Yn5,230/t amid active trade. October rebar futures rose by 3.15pc to Yn5,597/t.
In Turkey's domestic rebar market, most stockists bids across Istanbul, Izmir and Iskenderun averaged $680-685/t ex-works excluding VAT. Market participants believe the ideal result of Turkey's Central Bank announcement on interest rates tomorrow would be a very slight drop in interest rates.
That could at least halt strong volatility in the lira-USD exchange rate, and naturally ease interest rates for construction and housing projects. Keeping interest rates at high levels would continue to curb end-user demand while much lower interest rates would likely see the lira weaken strongly against the dollar.
The Argus daily HMS 1/2 80:20 (short-sea) cif Turkey steel scrap assessment decreased $2.50/t to $422.50/t on Wednesday on lower bid-offer indications. Mills targeted $410/t cfr Iskenderun and below for Israeli HMS 1/2 over the past two days.
