The Turkey region steel market is showing stronger scrap prices having reduced margins with rebar, awaiting a catch up in steel prices or a correction in scrap to reduce relative strength for the feedstock, analysis using Platts Turkey ARC indices showed Wednesday.
The implied melt margin using TSI scrap and Platts rebar spot prices has weakened since last month, assessed Wednesday at $146.50/mt, from an average $150.90/mt in February.
This trend may be putting pressure on scrap, as rebar pricing over 30-days looks even keeled, based on the Platts metric.
Meanwhile, re-roller margins in Turkey using Platts Black Sea billet against rebar, with indicative shipment costs into Turkey rose further, to $22.50/mt from the average of $21/mt last month.
TSI Turkey HMS scrap prices rose this month to $303/mt CFR on March 9, and remain at comparatively high levels of $301/mt published Wednesday, compared to a February average at $262.60/mt CFR.
The Turkey ARC Scrap 30-day index was at 2.38% on Wednesday, representing $7.17/mt over its expected value from inter-market spreads over the timespan, down from 4.46% seen on March 9 but compared to weaker values over February.
The Turkey ARC Billet 30-day index on Wednesday was at minus 2.94%, or $12.44/mt under its expected value for the trading period, recovering from minus 5.04% seen March 8.
The Turkey ARC Rebar 30-day index was at 0.56%, and had recovered from negative index values since March 8, when Platts price assessment last rose sharply.
The Turkey ARC data provides indicators of relative strength, and monetary values, for the degree of dispersion around commodity prices, generated through 30-day trading history between scrap, billet and rebar.
The degree over and below zero marks the commodity's price deviation from the 30-day and 60-day average price relationship for the three-product group.
