Turkey ferrous: Price surges towards new high

The Turkish steel scrap import price jumped sharply again on three trades concluded for June shipment today and is on course to reach a new multi-year high amid a renewed surge across global ferrous markets.

The Argus daily HMS 1/2 80:20 cfr Turkey steel scrap assessment increased $9.30/t to $479.70/t cfr on Thursday, just below the 2021 high of $482/t assessed on 11 January.

A Baltic supplier sold HMS 1/2 80:20 at $480/t and bonus at $490/t cfr Marmara for June shipment today.

A second Baltic supplier sold HMS 1/2 80:20 at $480/t, shred at $485/t and bonus at $490/t cfr Marmara for June shipment today.

A third Baltic supplier sold HMS 1/2 80:20 at $479/t and bonus at $489/t cfr Izmir. The cargo could be scheduled for July shipment. That would be considered early, even for this buyer, but the buyer has bought several deep-sea cargoes already for June shipment.

A continental European supplier sold 25,000t of HMS 1/2 material and 5,000t of HMS1/P&S at an average price of $466/t cfr Iskenderun for end June shipment, also today.

A Scandinavian supplier was heard to sell HMS 1/2 80:20 slightly higher than $480/t cfr Turkey today but details could not be retrieved before Argus went to press.

The scrap price increase today occurred alongside rapid increases in the Chinese ferrous complex. The Argus ICX 62pc Fe cfr Qingdao iron ore index rose by $15.90/dry metric tonne (dmt) to a new record high of $202.50/t while Chinese domestic and export rebar prices rose by $33-34/t.

Overseas and domestic demand for Turkish rebar continued to be strong today. Offer levels have now increased to above $700/t fob / ex-works. Southeast Asian importers have found it difficult to find July shipment from Turkey in the past 10 days as Turkish mills are already well sold for this period. An Izmir mill was heard to sell 55,000t of rebar to Singapore yesterday at the equivalent of $695/t fob Turkey on actual weight basis.

Chinese rebar is now too expensive for southeast Asian buyers to consider. Chinese export rebar offers have risen $45/t to $850/t fob on theoretical weight basis since the confirmation of the elimination of the tax rebate on steel exports, having risen $105/t in the second half of April before the confirmation.

The sharp rise in the Turkish scrap import price has been sufficient to keep pace with export rebar price rises but not with Turkish domestic rebar prices.

Argus' cfr Turkey steel scrap assessment has increased $52.20/t in the past 10 days. But Argus' weekly Turkish domestic steel rebar assessment increased the equivalent of $69.30/t to $696.80/t ex-works today after domestic demand soared this week to combine with consistently strong export demand and build extreme upward pressure on scrap prices.

A total of 26 cargoes are now recorded traded for June shipment. Two deep-sea cargo sales were advertised yesterday as concluded last week, both for May shipment. The prompt shipment purchases indicate mills will have to continue to keep up a significant rate of purchasing to commit to their lengthy order books, particularly now that prompt domestic rebar demand has returned in strength.

On higher short-sea price indications, the Argus daily A3 cif Marmara steel scrap assessment increased $10/t to $450/t.