Turkey ferrous: Price jumps on European sale

The Turkish scrap import price increased sharply today on a continental European cargo sale concluded for June shipment, as a lack of scrap offers combined with strong steel demand for the first time since 8-11 February.

The Argus daily HMS 1/2 80:20 cfr Turkey steel scrap assessment increased $14/t to $449/t cfr today.

A continental European supplier was heard to sell 20,000t of HMS 1/2 material, 8,000t of shred, 10,000t of bonus and 2,000t of busheling at an average price of 453/t cfr Iskenderun for June shipment.

Deep-sea scrap offers became difficult to find mid-week for Turkish importers after the news that China will cancel the export tax rebate for steel products, which may lead to a fall in China's competition in the seaborne steel market. US offers disappeared after an Iskenderun mill purchased a scrap cargo yesterday at $440/t cfr for HMS 1/2 80:20, $5/t higher than the level the same supplier sold to a Marmara mill within the previous 24 hours. A UK supplier and a continental European supplier were both heard to sell cargoes to Turkey during this second half of the week's surge in price.

In addition, a combination of strong overseas and Turkish domestic rebar demand was apparent for the first time in several weeks after local demand rose strongly yesterday to yield large tonnage sales. There has been several days of improved domestic demand since 20 April but yesterday and today showed the strongest levels in terms of price and volume. An Izmir mill sold over 65,000t today and yesterday at around $625/t ex-works excluding VAT. An Iskenderun mill and a Marmara mill sold 10,000t each yesterday at $635/t ex-works excluding VAT, and demand remains strong in both regions today. These were the highest volumes sold on a daily basis locally by most mills in the whole of April.

Turkish mills are recorded to have purchased 18 deep-sea cargoes for June shipment. But even having already bought large volumes for June, the lack of scrap offers and the rise in domestic and seaborne rebar demand has led to significant upward pressure on price. Argus' cfr Turkey steel scrap assessment has increased $21.50/t in the past three days, the steepest three-day period rise since 8-11 February when the assessment rose similarly, by $23.20/t, from $389.30/t to $412.50/t,

Several short-sea suppliers said they would target well above $420/t cif Marmara next week because of the rise in deep-sea prices. Turkish mills have purchased many short-sea cargoes in the past 10 days however, and their focus is now on deep-sea cargoes.

The Argus daily A3 cif Marmara steel scrap assessment increased $10/t to $420/t.