- Shortsea scrap demand low, cash terms an issue
- Euro drop may cap further scrap gain
The Turkish deep-sea imported scrap market saw an upward movement following a recent deal, buoyed by stronger domestic rebar sales and price gains. Sellers held firm on price expectations, though a weak dollar continued to pose headwinds.
Market sources noted a wide gap between bids and offers, with mills resisting the higher levels targeted by suppliers. Some recent deals concluded earlier were reportedly below current offer prices, suggesting mills remained cautious.
Shortsea scrap demand from Turkish mills also remained muted. Negotiations were hindered by difficulties in reaching payment agreements, with exporters largely insisting on cash settlements.
BigMint’s price assessments
- US-origin HMS 80:20 bulk scrap stood at $342/t CFR Turkiye, up $4/t w-o-w
- Bulk HMS 80:20 from the US East Coast was at $321/t FOB, up $3/t w-o-w.
The Turkish scrap-to-rebar spread stood at $200-210/t, and Turkish rebar export prices were assessed at $540-545/t FOB, with workable levels heard up to $555-565/t Exw
Approximately 11-12 deep-sea deals concluded over the past week in the $334-342.5/t CFR range
Market comments
The Baltic HMS collection prices reported at EUR 270/t delivered to docks, and expectations of a further EUR 5/t increase soon.
A trader noted that, some sellers were holding back, awaiting further clarity on trade tensions and possible peace developments. Meanwhile, interested mills were also taking a cautious approach to booking June-shipment cargoes.
Sell-side participants maintained offer levels for US/Baltic-origin HMS 80:20 mostly in the range of $345-348/t CFR, aiming for slightly higher numbers. Mills, however, were showing resistance beyond $343/t CFR, though short-term sentiment stayed positive.
A market participant remarked, “The $345/t CFR level seems inevitable, but mills are still holding back, citing similar levels for EU and UK-origin material.”
Domestic market scenario
Demand for rebar within Turkiye remains healthy, supporting improved mill conditions. Strong recent bookings are likely to push up scrap demand for June-shipment cargoes.
A trader commented, “Rebar demand is strong. As scrap prices adjusted, mills raised rebar offers and strengthened their order books.”
Outlook
In the near term, Turkish mills are showing resistance to further scrap price hikes despite ongoing interest in June-July shipments. A mill source stated, “The market has likely bottomed, prompting widespread restocking, This restocking momentum is expected to continue for the next few weeks leading up to Eid al-Adha, with prices likely reaching $350/t CFR.
However, the recent depreciation of the euro could cap further upside in Turkish import scrap prices, as it may encourage European recyclers to lower their export offers while remaining competitive.
Leave a Reply