Turkey's ferrous scrap import market awoke from a month-long coma Thursday with a spate of cargoes traded, though sentiment regarding the repeatability of the trades and expectations for the next purchase level kept the daily assessment stable day on day.
S&P Global Platts assessed HMS I/II 80:20 CFR Turkey at $237.50/mt, representing the mid-point of two premium material cargoes that were traded and expectations for the next booking.
Six cargoes were heard traded on Thursday, although three of these could not be factored into the assessment.
Three cargoes of UK origin were heard in a price range of $220-$224/mt, though two of these lacked details on whether the price was an average or referring to a specific grade of material so could not be factored into the assessment.
Overruling the remaining UK cargo were two deepsea sales from premium sellers. A US premium seller fixed a cargo at $235/mt for 80:20, though the repeatability of this price level was met with some skepticism by the market.
The seller in question had been heard to be holding a single below-market cargo to round out their financial year this month. Other offerings by the supplier in question were heard to be far north, at $250/mt minimum. The cargo was booked on a prompt basis for June.
The second cargo came from a Baltic merchant at $240/mt for 80:20, though the amount was minimal at 6,000 mt and the majority of the cargo consisted of shred. This cargo was booked for a mid-July delivery date.
After the assessment time stamp at 16:30, another cargo was heard from a Baltic merchant with 80:20 priced at $232.50/mt. Sources said that the volume was minimal with a source close to the transaction calling it unrepresentative of the market. The quality of the material sold has also been described in the market as lower than premium 80:20, with a typical discount of $5-$10/mt applied against US top-notch cargo.
Buy- and sell-side sources said that offer levels stood at $240/mt after these trades. Two high-quality Baltic sellers were heard to be in the market. Many expected that a rally would be the next step after the initial breaking of the ice.
"After the first scrap bookings suppliers will be pushing for an increase because Turkish buyers have significant shortages of scrap and will have to buy in the next few weeks. I think scrap can come up to $250/mt then stabilize and after that we'll see what happens," said a UK trader.
Estimations of repeatable value from the market fell into a comfortable range of $235-$240/mt following the deals, as most did not believe that the material would be available to repeat the low levels of UK purchases.
"I believe this is the bottom. At least for now. In my opinion, all producers would want to buy at UK prices," said a Turkish buyer. "But most of the sellers don't accept this price. So next booking will be higher or same level."
He added that rebar prices had increased by 60 lira ($20/mt) in the domestic Turkish market the last two days and that the impact on scrap purchasers would have to be seen.
Other rises were spotted Thursday, as positive sentiment surrounding the Dragon Boat Festival in China had pushed Chinese domestic rebar up by $10/mt in two days.
