Sentiment in the Turkish ferrous scrap market on Wednesday was torn in two directions by a new, higher trade and the Turkish government cutting the tariff on imported rebar.
Platts assessed HMS I/II 80:20 at $273/mt on Wednesday, up $2 from Tuesday.
A US premium merchant sold a cargo to an Iskenderun EAF-based producer late Tuesday. The weights for the cargo were yet to be finalized, but the total was set at 40,000 mt.
P&S was included at $287/mt with a range of 12,000-17,000 mt, shred at $279/mt with a range of 5,000-10,000 mt, and 80:20 at $274/mt making up the remaining percentage of the cargo.
Some sources immediately saw the cargo as an increase for the market, after the last US sale was made at $271/mt for 80:20. Others argued that one cargo did not make a market.
"We will see new levels," said an agent in Turkey for a Baltic scrapyard.
"The US may jump to $275-$280/mt and Europe $272-$273/mt, I guess." Other sources agreed that the cargo represented value for the market, or simply an increase.
"The market was very slow but mills should purchase. Domestic rebar sales are good," a Turkey-based trader said. However, the bears honed in on Tuesday's announcement of the duty on imported rebar being halved to 15%.
"The general sentiment is not promising," said a Turkish producer.
He added that the rebar market would slow because of the tariff, and it was possible mills would have to drop FOB rebar offers to return to the export market.
