TURKEY July 21 2015 10:15 AM
ANKARA (Scrap Register): The daily benchmark index for Turkish imports of HMS #1&2 80:20 fell throughout June, reversing three months of consecutive gains.
According to The Steel Index, the price drifted down $1 a ton during the first three weeks of June on the back of quiet trade, before falling heavily to end the month at $262 a ton CFR Iskenderun port. The monthly average decreased 2.7% month-on-month (m-om) to $277.86 a ton.
The monthly average of TSI’s daily index for Turkish imports of HMS #1&2 80:20 fell $7.72 a ton (-2.7%) month-on-month. Scrap traders would have done well to take their summer holidays this month - June was eerily quiet with only a handful of cargoes traded.
Mills were known to have booked high volumes of Chinese-origin billet throughout May and June as a result of it being by far the most economical route to rebar production. This meant the lull in the scrap market pointed at something more sinister to come price-wise, with mills certainly not willing to purchase scrap at anywhere near the $280 a ton level.
By the end of the month HMS #1&2 80:20 was trading at $262 a ton. However, these purchases were only sporadic and the mills were yet to return to the import market en masse. Early July purchases continued the downward trend and, with scrap needing to be much nearer $200/ t to gain parity with billets, participants expect further weakness to come.
(This article is compiled by Vibin Antony on behalf of Scrap Register. Send in your suggestions and comments to editor@scrapregister.com)