Turkey ferrous: Price down on lower offer indications

The Turkish scrap import price decreased today as several deep-sea scrap suppliers showed willingness to accept prices below $480/t cfr for premium HMS 1/2 80:20 equivalent cargoes.

The Argus daily HMS 1/2 80:20 cfr Turkey steel scrap assessment decreased $2.50/t to $477.50/t today.

The euro clawed back yesterday's losses against the US dollar to return back to 20 June levels, reaching €1.180: $1. The pound sterling strengthened more significantly and appreciated throughout today to hit £1.378: $1.

Several deep-sea scrap suppliers have showed willingness to sell just below $480/t cfr for premium HMS 1/2 80:20 equivalent prices after dockside purchasing prices fell by €10-17.50/t in northwest Europe and Baltic ports over the past week.

Baltic dockside purchasing prices for HMS 1/2 80:20 were around €345/t delivered to dock today, down by around €10-15/t since the beginning of July. But if the dollar remains weaker going into next week, premium HMS 1/2 80:20 prices below $475/t cfr Turkey will not likely be attractive to many exporters despite their eagerness to sell following Turkey's absence this week. Most of the Turkish deep-sea purchasing activity next week is expected to be for Baltic-origin cargoes.

Several Turkish mills will see next week as a buying opportunity because of how Chinese rebar prices continue to find support. A combination of lower steel outputs and falling steel inventories today boosted Asia-Pacific steel market sentiment today after a mid-week cooling off period. Smooth trade lifted Shanghai domestic rebar prices slightly by Yn20/t to Yn5,250/t ex-works. Shanghai rebar prices are up YN450/t ($69.60/t) since exactly one month ago, when they bottomed on 22 June.

October rebar futures also rose today by 1.09pc to Yn5,648/t. Nationwide rebar stockpiles in Chinese traders and producers' warehouses fell by 180,000t following a decrease of 260,000t last week, market participants said.

Additionally, nationwide rebar and wire rod output fell by 5pc over last week to 4.9mn t this week, boosting market sentiment further. China's increasing shift towards becoming a net steel importer was further in evidence today as more Russian billet was heard sold there this week.

In the Turkish short-sea scrap import market, the Argus daily A3 cif Marmara steel scrap assessment decreased $2.50/t to $447.50/t today on lower offer indications.