*Turkish Scrap
Turkish Deepsea import scrap prices rebound as buying activity resumes.
Deepsea Turkish import scrap prices strengthened, as one Marmara mill was heard to book three cargoes, breaking a two-week long silence in the market. S&P Global Platts assessed Turkish imports of premium heavy melting scrap 1/2 (80:20) at $284.50/mt CFR on Aug. 25, up $3.50/ mt on day. A Baltic-origin cargo was booked Aug. 25 by a Marmara mill, with 35,000 mt HMS 1/2 (80:20) at $283/mt CFR, 1,500 mt bonus scrap at $293/mt CFR, and 1,500 mt bushelling at $298/mt CFR. The deal was confirmed by the sell side. (Platts)
*FOB China HRC
The index kept flat yesterday (8.25.20) at US$512/t, MTD US$499.63/t.
CISA mills produced an average of 2.16mn t/d crude steel over 1-10 Aug, up by 0.35pc from 22-31 July and up by 5.2pc on year. Two large Chinese mills increased offers by $5/t to $525/t fob for SS400 HRC, but other mills kept offers flat at $515-520/t fob, being willing to receive orders at $510-515/t fob China.
A deal for 20,000-30,000t of SAE1006 grade coils produced by Indian mills were concluded at $515/t cfr Vietnam this week. Offers soared to $540/t and $525/t cfr Vietnam for coils from Taiwan and Russia respectively. Mills from Japan and South Korea were no longer willing to receive orders below $520/t cfr Vietnam. (Argus)
*NWE HRC
Some European mills are contemplating reneging on/renegotiating July-December contracts with buyers in the automotive supply chain. A potentially big story if it amounts to anything (although some of the mills are just having internal discussions on the matter at this stage). Unsurprising when we consider the deals were done around €410-420, and spot is approaching €450, and the forward curve firmly in contango. Perhaps a better option than fixed price, long-term would be index-linked, floating base price sales, ensuring the market is tracked? (Argus)