Turkish scrap prices slipped several dollars Monday as a number of sellers were looking to move material but no deals were heard.
S&P Global Platts assessed Turkish imports of deepsea premium heavy melting scrap I/II (80:20) $3/mt lower at $283/mt CFR Monday.
At least 10 cargoes were heard from European, US and Baltic sellers, and a UK merchant reportedly offered 25,000 mt of shred at $290/mt CFR to no avail - the offer would normalize to $285/mt CFR on an 80:20 basis.
"There's no firm demand seen from the buyers," said an agent for several European sellers. A European seller agreed, believing the majority of Turkish producers would sit out this week as conditions for purchasing remained poor.
Analysis continues below...
Local rebar pricing has risen of late, with prices around $430/mt ex-works from two producers, but this was more a function of the weak lira than demand. Given tepid export appetite, some said Turkish mills would be offering February rollings into Europe, where they have been comparatively expensive in recent years, sources said.
The unwinding of coking coal prices means Turkish mills have not been competitive into Southeast Asia after sales late last year, but the jump in Chinese futures, billet and iron ore has seen rebar prices rise.
On Monday Chinese export rebar was assessed at $429/mt FOB, with Turkish prices assessed at $425/mt FOB -- most sources suggested Turkish rebar prices would slip, however, given the extended demand vacuum.
LME curve moves up The London Metal Exchange was a touch lower in the front month, with February last trading at $294/mt, down from Friday's close of $297.50/mt.
However, April through June were $4-$5/mt higher, shrugging off the softer physical market as sellers attempted to move tons. The rebar curve printed higher, with February moving up $4.50/mt and April and May up $10/mt.
Shanghai rebar futures had surged earlier Monday as continued talk of induction furnaces being clamped down on stoked sentiment.
The sale of scrap to induction furnace-based producers of construction steel will be forbidden under regulations that take effect from March 31, 2017, according to a statement released by the Ministry of Industry.
The news sent SHFE rebar, Dalian iron ore and spot prices of billet in Tangshan higher.
Platts analyzes other steel and scrap products in this feature:
Scrap | HRC | Rebar | Semi-finished | News
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