Turkey ferrous: Price up as rebar sales rise sharply

The Turkish scrap import price increased on Wednesday on sales from continental Europe and Scandinavia, as export rebar sales prices and volumes rose significantly.

The Argus daily HMS 1/2 80:20 cfr Turkey steel scrap assessment moved up $6.30/t to $426.80/t cfr.

A continental European supplier sold 22,500t of HMS 1/2 80:20 and 12,500t of a mix of P&S and HMS1 at an average price of $429/t cfr Iskenderun for early June shipment.

A Scandinavian supplier sold HMS 1/2 80:20 at $427/t, shred at $432/t and bonus at $437t cfr Samsun for end May / beginning of June shipment.

A second continental European supplier sold 16,000t of HMS 1/2 80:20 at $413/t, 2,500t of shred at $418/t and 8,500t of bonus at $423/t cfr Marmara for May shipment at the start of the week.

This continental European supplier is heard to have sold at least four cargoes in the past five weeks to Turkey, selling two in a matter of only several business days in the past week.

The volume of turnover of cash at these far higher seaborne prices in the past five months compared to previous years is the main reason why some of the larger suppliers are moving so much export volume. This is providing ample supply for Turkey, which has contributed to depressed scrap pricing relative to a renewed upturn in steel prices over recent weeks.

A US supplier sold HMS 1/2 80:20 at $420/t and bonus at $430/t cfr Iskenderun for end May/beginning June shipment at the start of the week. The supplier sells at a much lower average price to Turkey across each year than other US suppliers.

The latest sales at higher levels from continental Europe and Scandinavia better reflect the shape of the market and how a lot of scrap availability was washed out last week via sales to Turkey. And China's steel complex has shifted to a new higher price level based on production cuts and regional mills aligning prices to a zero-tax export rebate basis.

Turkish export rebar sales have escalated to far higher levels in the past week as a result of this Chinese movement. Sales from Turkey have been concluded to Singapore, Hong Kong, the US, Canada, Chile, Peru, Senegal and the Caribbean, all in the past few days.

Record fob Turkey price levels have been transacted during this period, with some of these deals at $647-648/t fob. Argus' fob Turkey steel rebar assessment reached its highest level on record today, increasing $2.90/t to $646.40/t fob today.

Baltic and Russian deep-sea scrap offers were heard today at $427-430/t cfr Turkey for premium HMS 1/2 80:20.

More higher-priced short-sea deals were concluded yesterday after Turkish demand began to increase significantly on Monday.

A total of 5,000t of Bulgarian HMS 1/2 80:20 was sold at $400/t cif Marmara. A total of 1,500t of Bulgarian HMS 1/2 80:20 was sold at $402/t along with 1,500t of bonus at $412/t on a cif northern Turkey basis.

The Argus daily A3 cif Marmara steel scrap assessment increased $6/t to $401/t.