The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) fell by $10.63/mt to $398.75/mt cfr on Tuesday though the market is yet to hit the bottom.
Contrary to expectations, deals will be scarce in Turkey this week as mills continue to postpone ferrous scrap purchases amid weak steel product sales. Sporadic negotiations are taking place with scrap suppliers from the USA and the UK with no deals reported so far. Bids from Turkish mills were heard at $380-390/mt cfr for HMS 1&2 (80:20).
Market participants believe that prices in the Turkish imported scrap market are approaching a trough but are not clear about that price range. Much depends on whether US exporters will continue accepting lower prices to Turkey, like they did in the second half of January, as their domestic market is anticipated to drop this month. Negative sentiment remains firm with some cargoes from the US still available for February shipment, though Turkish mills are covered for that period.
In the domestic market, Turkish mills cut their purchase prices for shipbreaking scrap by $15/mt to $385/mt delivered over a day.
The downtrend continues in the Turkish domestic rebar market, where the daily spot prices dropped by TRY100-150/mt ($14-21/mt) to TRY4,850-4,900/mt ex-works, including 18pc VAT, on Tuesday.
Icdas decreased its local rebar prices by TRY60/mt ($8/mt) and opened sales in Biga at TRY5,140/mt ex-works, including 18pc VAT, and in Istanbul at TRY5,200/mt ex-works, including 18pc VAT. Bastug Metalurji reduced its rebar prices by TRY100/mt ($14/mt) to TRY5,100/mt ex-works, including 18pc VAT.
The daily exported rebar price in Turkey moved to $600/mt fob on Tuesday versus $600-610/mt fob on Monday amid difficulties with sales.