Turkiye: Imported bulk scrap prices inch down w-o-w; rebar sales stay under pressure

• Mills’ scrap demand loses steam as rebar sales drag
• Kardemir bucks trend with swift domestic rebar sales

Turkiye’s deep-sea ferrous scrap import prices slipped by $1/tonne (t) w-o-w to around $339/t CFR, as mills resisted higher offers amid weak finished steel sales. While prices inched up slightly mid-week, helping limit the overall decline, a persistent gap between buyers’ bids and sellers’ offers remains.

Rebar demand continues to lag in both domestic and export markets, keeping sentiment muted.

BigMint’s price assessments

• US-origin HMS 80:20 bulk scrap stood at $339/t CFR Turkiye, inching down by $1/t w-o-w.
• Bulk HMS 80:20 from the US East Coast was at $315/t FOB, down $2/t w-o-w.

The Turkish rebar-to-scrap spread stood at $200-210/t, with workable levels for Turkish rebars heard up to $545-550/t FOB.

Approximately two deep-sea deals were concluded over the past week in the $337-340/t CFR range.

Market commentary

Offers for US/Baltic-origin HMS 80:20 were mostly in the $340-345/t CFR range, with tradable levels of around $335-338/t CFR. Sellers from the EU/UK are offering at $340/t CFR Turkiye. However, some bookings are anticipated for late July-early August shipments.

A trade source observed, “The European domestic market is currently strong, and US sellers are also unwilling to offer below $348/t CFR due to a firm domestic outlook and tight availability.”

Another mill side source stated, “Mills have been limiting scrap purchases amid weak steel sales, leading to falling inventories. However, they may soon need to book 20-25 more cargoes for July shipments to replenish stocks.”

Domestic market

Türkiye’s domestic rebar market remained weak. However, Kardemir sold about 31,500 t of rebar within an hour after reopening sales at TRY 25,752/t ($543/t) exw – down TRY 125/t ($9/t) from its last offer.

Other mills lowered their offers by $5/t, bringing rebar prices to $535-555/t exw, depending on the region. Despite these reductions, local demand stayed cautious.

Export offers also slipped to $540-550/t FOB for July shipments, down from $545-555/t last week. Market participants remain skeptical whether such low rebar offers can persist if scrap prices climb further, with no confirmed export deals reported.

Outlook

Market insiders suggest a potential rebound in scrap prices, particularly after reports of a “fake” booking circulated to halt further price drops. However, poor steel sales-evidenced by rebar transactions at below $540/t- may prevent any rally from holding ground.

Sellers remain hopeful about near-term demand, and most market participants do not expect any significant disruption from the Israel-Iran conflict. A participant commented, “There aren’t many offers in the market right now, but Turkish mills do need to buy cargoes, so we may see demand pick up soon.”