TURKEY April 20 2015 9:35 AM
ANKARA (Scrap Register): Turkish HMS 1/2 80:20 scrap average import prices (CFR Iskenderun Port, Turkey) rebounded during March, following a run of precipitous falls over the last couple of months.
According to The Steel Index, the monthly average prices rose by 3.6% month-on-month to $256.59 a ton CFR Iskenderun port during March. The benchmark index for Turkish imports of HMS #1&2 80:20 rose by $13 a ton in the first week of March, before remaining in the range of $256-262 a ton thereafter on the back of a relatively quiet market.
In commodity markets, large falls in pricing over a short period of time are often followed by a sharp rebound as the threshold in the supply and demand dynamic is quickly breached.
This proved to be the case for Turkish scrap imports in March, when the monthly average of TSI’s daily index for Turkish imports of HMS #1&2 80:20 rose $8.94 a ton (3.6%) month-on-month following its drop of over 20% in February.
Market participants reported that the effects of the $80 a ton fall in price since the turn of the year were finally being felt on the supply side. With cargoes now harder to come by, scrap dealers were well aware of the fact the market had now returned to them, and they could begin to justify price rises.
However, many buyers feel that this rebound is only a short break in the longer-term downward trend. There remains little room for manoeuvre on rebar pricing, with lacklustre steel demand and iron ore prices even dipping below the $50 a ton mark CFR China port.
(This article is compiled by Vibin Antony on behalf of Scrap Register. Send in your suggestions and comments to editor@scrapregister.com)
