The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) increased by $1.82/mt to $501.82/mt cfr on Tuesday following improved demand on the revival of rebar sales.
Turkish importers returned to the global ferrous scrap market after a Marmara-based mill purchased HMS 1&2 (80:20) at $501/mt cfr, and shredded scrap, and bonus material at $511/mt cfr from a Baltic supplier on Jun 8.
At least four mills were looking for scrap cargoes after this deal and bids rose from $490-495/mt cfr to $500-501/mt cfr for HMS 1&2 (80:20) from the USA and the Baltic region this morning. Still, offers were limited as bids at higher prices failed to interest suppliers who are targeting $5-10/mt higher. Turkish mills are expected to continue purchases to cover their requirements for July shipment in the near term.
However, Asian bulk markets slipped by $8/mt on two bookings concluded over the past few days. A South Korean mill booked a Russian cargo at $488/mt cfr for A3, while a US cargo sold to Bangladesh at a price level of $525/mt cfr for shredded scrap.
Active rebar sales also lifted demand in the Turkish market this week. A Marmara-based mill was heard to have sold around 100,000mt of rebar to Canada and Brazil at $740-745/mt fob actual weight. Besides, some tonnages of rebar were sold from Turkey to Europe within the same range.
Spot rebar prices in the Turkish domestic market were unchanged at TRY7,050-7,100/mt ex-works, including 18pc VAT, on Tuesday. Kardemir opened rebar sales at TRY6,979.70/mt ex-works, including 18pc VAT, and sold around 50,000mt.