- Mills focus on late-May, June cargoes
- Costlier imported scrap lifts rebar tags
The Turkish deep-sea imported scrap market saw an uptick following a recent US deal comprising HMS 80:20 at $338/t and shredded at $358/t — that went to an East Marmara mill. The rise in scrap prices is being supported by higher collection costs in Europe and the US, along with improving sentiment in the rebar market.
BigMint’s price assessments
- US-origin HMS 80:20 bulk scrap stood at $338/t CFR Turkiye, up $8/t w-o-w.
- Bulk HMS 80:20 from the US East Coast was at $318/t FOB, up $10/t w-o-w.
The Turkish scrap-to-rebar spread stood at $200-210/t, and Turkish rebar export prices were assessed at $535-540/t FOB, holding steady from last week but slightly lower than the earlier offer range of $540-550/t.
Market comments
Scrap collectors were forced to increase dockside prices to stimulate supply to the yards. HMS collection costs were reported at EUR 250-280/t ($271-277/t) delivered to docks, up from EUR 240-250/t ($271-283/t).
A Turkish mill source commented that, “Buyers remained cautious due to weak downstream demand, as this period is typically strong for construction and rebar sales, but the current situation is quite different, with financial and political challenges significantly impacting the market.”
Indicative offers for US-Baltic-origin HMS 80:20 were largely heard in the range of $340-345/t CFR, with a deal clustering around $338/t CFR. Sellers remained firm with their offer levels, sensing a potential rebound in rebar demand, while EU-origin HMS was being offered at around $335/t CFR.
A market insider noted that US suppliers are targeting $345-350/t CFR for HMS 80:20, with Turkish buyers potentially accepting these levels due to restocking needs. Current offers stand at $345-350/t for US-origin HMS and $340-345/t CFR for Baltic materials. The market has inched up, with suppliers citing reasons to push prices higher.
It appears that Turkish mills have decided to pause for now on new bookings, while still requiring two to three cargoes for late-May shipment and seeking cargoes for June shipment. They are likely waiting to assess actual demand for rebar before committing to new scrap purchases.
Domestic market scenario
Turkish producers continued to focus on finished steel sales, seeking to secure higher rebar prices before accepting the increased cost of imported scrap.
Turkiye’s steelmakers raised domestic rebar offers following a rebound in imported scrap prices. Kardemir led the move, increasing its local rebar prices by TRY 300/t ($4/t) from the previous round, setting new offers at TRY 25,200/t ($543/t) exw.
However, rising production costs, driven by higher import scrap prices, prevented mills from offering discounts, which in turn negatively impacted domestic sales.
Outlook
In the short term, US-origin HMS 80:20 prices will likely stay firm, with Turkish mills focusing on late-May and June shipments. Rebar prices are supported by higher scrap costs, but rising production expenses may limit domestic sales. The market remains cautious due to financial and political instability in the country.
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