Turkey Ferrous: Price Flat As Baltics Seek Sales

The Turkish scrap import price was unchanged on Wednesday as Baltic sales appetite strengthened, continental European suppliers became more inclined to wait to make their next sales and Turkish mills held back from negotiations in an attempt to exert downward pressure on prices.
Two to three Baltic exporters were in the market to sell today. It is not clear what price they targeted but there are several from the region who have missed the chance to sell HMS 1/2 80:20 at or above $500/t cfr Turkey in recent weeks. They will now look to see if they can get close to that price level after an influx of north American supply over the past week put a halt to any short-term upward price momentum.
Most continental European exporters have had to pay close to €370/t delivered to dock for HMS 1/2 scrap for a week and the euro has remained steady against the dollar at above €1. $1.21. Margins would be extremely squeezed on sales to Turkey if bids for continental European HMS 1/2 80:20 were to fall below $495/t cfr and be accepted.
The high profits that European exporters are making domestically and around Europe gives them little reason to accept lower Turkish bid levels when demand for August shipment is likely to strengthen next week. Most of the region’s exporters stated that it is unusual to be in a position where they clearly need the $500-503/t levels US exporters achieved with their most recent sales.
Increased demand from other commodities has also driven freight rates from Europe and the US to Turkey up this week. Market participants expect rates to move higher in the coming weeks as vessel availability falls. Three scrap exporters quoted rates around 20pc up, an increase of around $6-7/t.
Turkish mills continue to maintain steady scrap-export rebar margins after an Iskenderun mill was heard to sell a cargo to Yemen yesterday at a base price of around $735/t fob on actual weight basis. This was achieved despite a fall in steel prices and futures in China for two consecutive days. Iskenderun mills cannot sell locally at close to $725/t ex-works excluding VAT today because of weaker demand this week.
Turkish mills have lowered their demand for short-sea cargoes this week, showing no interest to pay $480/t cif Marmara for Romanian HMS 1/2 80:20 after they were not heard to pay this level last week.