A raft of fresh deals carried Turkish imported scrap pricing higher Friday, as the market shrugged off the bearishness that prevailed around midweek.
Several composite cargoes were spotted from Europe in the morning, with prices showing a steady market over Thursday. More trades followed in the afternoon, however, including two premium US cargoes at $229/mt and $232/mt for 80:20.
This business sent indications rising from buy- and sell-side sources alike, with all indicating $229-232/mt as representing repeatable value.
Platts assessed HMS I/II 80:20 CFR Turkey at $230/mt on Friday, up $1/mt from Thursday.
Mills have been able to pay higher scrap costs given the recent surge in domestic rebar pricing, with $400/mt ex-works or thereabouts being achieved in local sales.
Export offers have risen to a similar level, giving mills a good margin on earlier scrap purchases, though only very small tonnage deals were reportedly fixed at $400/mt FOB into neighboring countries, with major export locations also dropping intake volumes in exchange for slightly higher prices than expected ($370/mt FOB to UAE and $380-$385 FOB into the US).
Volatility in Chinese steel prices cast something of a cloud over the market, but participants said it was having no real impact on pricing.
"The Chinese situation hasn't had much impact except psychological," said a UK trader, explaining that the rebar position had temporarily insulated the scrap market against billet export offerings, both from China and from the CIS region.
By the end of the week, Chinese steel and raw materials prices were back to bullish, with sources citing a slower-than-anticipated ramp up in capacity as a potential reason.
Strong prices from other markets have continued to support scrap as well, with shred prices to India remaining at $225-$230/mt for containers.
An Indian buyer said offers had reached $240/mt. A UK scrap merchant said even the Indian market was lagging, as CFR prices into Pakistan had cleared $235/mt in containers.
