The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) climbed by $0.83/mt to $289.81/mt cfr on Friday as suppliers continued to insist on higher prices.
Some negotiations, mainly for October shipment, are in progress in the Turkish imported ferrous scrap market. Bids were reported at $285-288/mt cfr for HMS 1&2 (80:20) from the US or the Baltic region. However, most Baltic exporters have offered this grade at $295/mt cfr, while some US sellers are targeting $300/mt cfr.
In fact, a Scandinavian supplier recently closed a deal with a Turkish mill at $295/mt cfr for 7,000mt of HMS 1&2 (80:20) and at $305/mt cfr for 7,000mt of P&S 5ft.
European exporters have pushed for increases in scrap offers into Turkey after a sudden and rapid 15-18pc increase in European bulk freight rates this week. Smaller vessel supply is tight after a surge in exports of other dry commodities out Russia and Ukraine took up a significant percentage of available vessels, leaving other countries scrambling for ships. Freight rates for vessels that can carry 30,000mt of scrap from Europe to Turkey jumped to $25-26/mt this week, from $22-23/mt a week earlier.
European suppliers are asking for $290/mt cfr for HMS 1&2 (80:20) now, a rise from August 26 when an exporter from the Netherlands sold HMS 1&2 (80:20) at $283/mt cfr and bonus material at $295/mt cfr to a Turkish mill.
Daily domestic rebar spot prices in Turkey were unchanged at TRY3,850-3,880/mt ex-works, including 18pc VAT, on Friday, while exported rebar prices held at $440-445/mt fob.
Some billet was traded in Turkey during the last week of August. Several sales in the domestic market were reported at $423-425/mt ex-works, and new offers rose to $430/mt ex-works. An export deal was also heard at around $420/mt fob to North Africa, but it was not confirmed at the time of publication.
($1 = TRY7.33)