Turkiye: Imported bulk scrap prices remain range-bound w-o-w; US sellers adopt firm stance – BigMint

• Turkish mills continue deep-sea scrap purchases for Mar’25 delivery
• Rebar sales remain under pressure amid limited market activity

Turkish deep-sea bulk ferrous scrap prices fell by $1/t w-o-w, as demand remained subdued despite a recovery in sentiments in the Chinese steel market.

A steel mill participant noted that Turkiye’s mills resumed deep-sea scrap purchases for March shipments following a slight price drop, while rebar producers continued to struggle with price increases to keep up with rising scrap costs.

Following a brief slowdown in buying between the previous weekend and the start of the week, Turkish mills have secured over 50 deep-sea cargoes over the past five to six weeks, balancing price discounts with robust steel sales. With $360/t CFR now crossed, exporters in the US and UK are expected to test higher offers in the coming days.

A Netherlands-origin HMS 80:20 cargo was booked at $355/t CFR, effectively pushing premium HMS 80:20 prices to $361/t CFR and lifting the monthly average to $358/t CFR. Set for early April shipment, this transaction signals a firming of the price trend.

BigMint’s price assessments

• US-origin HMS 80:20 bulk scrap stood at $359/t CFR Turkiye, down $1/t w-o-w.
• Bulk HMS 80:20 from the US East Coast was at $336/t FOB, also down $2/t w-o-w.

The scrap-to-rebar spread decreased w-o-w to $200-206/t, with rebar export prices at $560-565/t FOB.

According to market participants, workable prices for US and Baltic-origin HMS (80:20) range between $355-360/t CFR, with US sellers maintaining a firm target of $360/t CFR. Meanwhile, UK-origin bulk HMS is available at approximately $353-355 CFR Turkiye.

Recent deals

• A Europe-origin (Aegean region) HMS 80:20 at $355/t
• Another Europe-origin (West Marmara region) HMS 80:20 at $357/t

A modest increase in freight costs from the US East Coast to Turkiye, climbing to $30/t from $29/t the week before, added additional strain on US shippers’ pricing.

Market scenario

Turkish mills remained under pressure last week as rebar prices declined to $545-550/t, down from the previous week’s estimates of $555-570/t.

A Turkish mill source commented, “Turkish mills aimed to push down prices for ex-Europe HMS 80:20 cargoes to $350-355 /t, but firm European domestic steel prices and tight supply at dockyards made it challenging to secure deals at these levels.”

Kardemir reduces rebar tags

Midweek, Turkiye’s integrated mill Kardemir significantly reduced its domestic rebar prices, thereby securing substantial orders. The long steel producer launched a rebar tender early Wednesday, offering 12-32mm rebar at TRY 23,850/t ($658/t) ex-works, including 20% VAT. Before local sales tax, this equates to around $548/t, down from TRY 24,498/t. Sources indicated that Kardemir sold 40,000 t before closing sales later in the day.

Outlook

Turkish mills are expected to maintain steady scrap restocking demand in the coming weeks, particularly for March/April shipments. While producers may continue accepting firm offers, market sentiment remains weak due to persistent pressure on long steel prices and limited sales activity.