Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) slid by $0.05/mt to $260.20/mt cfr on Friday after Baltic sales were reported.


Turkish mills opted for ferrous scrap bookings from the Baltic region after suppliers from that region accepted prices at around $260/mt cfr, while US exporters are still targeting $265/mt cfr. 


On July 16, a Karadeniz-based mill reportedly purchased 8,000mt of HMS 1&2 (80:20) at $260/mt cfr, 14,000mt of shredded scrap at $265/mt cfr and 4,000mt of bonus material at $270/mt cfr from a Finnish supplier. On the same day, an Izmir-based mill was heard to have bought HMS 1&2 (80:20) at $261.50/mt cfr from Russia, though further details of the deal were not confirmed.


On July 15, an Izmir-based mill was heard to have reached an agreement with a Baltic exporter at $260/mt cfr for HMS 1&2 (80:20), but cargo composition was not disclosed.


Some transactions were fixed in the Azov-Black Sea basin as well. Thus, Romanian-origin HMS 1&2 (80:20) changed hands at $250-252/mt cfr on July 16-17.


In the domestic market, Turkish mills raised purchase prices for shipbreaking scrap by $5/mt to $255/mt delivered on Friday.


Turkish rebar and billet prices rise

Daily domestic rebar spot prices increased by TRY30-40/mt ($4-6/mt) to TRY3,450-3,480/mt ex-works, including 18pc VAT, on Friday amid active sales. Icdas raised local rebar prices by TRY40/mt ($6/mt) to TRY3,480/mt ex-works, including 18pc VAT, while Izmir Demir Celik increased them by TRY30/mt ($4/mt) to TRY3,480/mt ex-works, including 18pc VAT.


Exported rebar prices went up to $420/mt fob on Friday versus $415-420/mt fob a day earlier. Turkish mills were also active in South East Asia recently.


Business activity was high in the domestic billet market this week. According to market participants, 80,000-90,000mt of semis were sold during the week. Prices varied at $390-395/mt ex-works at the beginning of the week and reached $400-405/mt ex-works by the end of it.


Freight rates surge

Rising bulk freight rates have contributed to exporters pushing for higher prices to alleviate any margin squeeze on fob port basis.


Freight rates from the US have doubled in the past two months for smaller 30,000mt-sized vessels, as scrap is now competing with a rapid increase in other commodity exports, like pet coke, wood pellets, fertilizers, and grains. In the past week, freight rates for a 30,000mt vessel on a New York-Turkey route jumped by $4/mt to $22-24/mt. A few months ago, similar vessel sizes on the same route were booked at $11-12/mt.

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