Turkey ferrous: Price flat, US exporters unmoved

The Turkish scrap import price was flat today as the possible onset of more Chinese domestic steel price falls this week plays against firm price indications from US scrap exporters, who have been unmoved by the downward correction in Chinese prices. The Argus daily HMS 1/2 80:20 cfr Turkey steel scrap assessment was flat at $503/t cfr today.

China's national development and reform commission — the country's macroeconomic management agency — on 14 May questioned Tangshan and Shanghai steel producers about any alleged illegal price manipulation during the recent sharp price gains. This investigation came two days after China's premier, Li Keqiang, said at the state council executive meeting that a more effective control on the recent rapid price hikes in bulk commodities is needed.

Shanghai domestic rebar prices have fallen by 610 yuan/t ($94.70) since 10 May but are still Yn340/t ($52.80) higher than 5 May, and Yn680/t ($105.60/t) higher than 1 April. A Chinese steel producer decreased its rebar export offer today by $40/t to $960/t fob on theoretical weight basis after offers had risen to $1,000-1,020/t fob over a week ago.

Turkish mills have no need to consider dropping their own rebar offers when there is still such a price gap between theirs and Chinese levels. Turkish mills can keep offer levels at $780/t fob for the moment. Global steel demand remains strong, availability for rebar, for example, is limited for Turkey's domestic market, and most importantly Chinese prices are still far higher than seaborne prices.

Another deep-sea scrap cargo was heard to trade in the middle of last week, at the equivalent of $501/t cfr Turkey for premium HMS 1/2 80:20, bringing the total recorded number up to 36 deep-sea cargoes for June shipment. Around 43-44 cargoes are estimated to have traded in total, meaning around 15 more cargoes are expected to trade for this shipment period. Only three US cargoes have so far been heard traded for June shipment with Turkey, although there are still many other global importing regions requiring large tonnages for June shipment.

On a lack of short-sea price indications, the Argus daily A3 cif Marmara steel scrap assessment remained flat at $475/t cif. A Ukrainian supplier was heard to sell HMS 1/2 85:15 at $480/t cif Marmara on 13 May.