- Bid-offer mismatches slow down trade activity
- Mills may cut production on soft rebar demand
Turkiye’s bulk deep-sea ferrous scrap prices edged up by $2/tonne (t) w-o-w to around $347/t CFR, although mills largely paused fresh purchases after securing significant volumes last week. Ongoing bearish sentiment in the rebar market kept buyers hesitant about paying above $345/t CFR for HMS 80:20.
Mills secured most of their required scrap in the latter half of last week, with most deals reported this week having been concluded over the previous weekend. Since then, buying activity has slowed, with no significant rush observed from mills.
Last week, around 9-10 imported scrap deals were concluded within $335-347/t.
BigMint’s price assessments
- US-origin HMS 80:20 bulk scrap stood at $347/t CFR Turkiye, up by $2/t w-o-w.
- Bulk HMS 80:20 from the US East Coast was at $320/t FOB, down $1/t w-o-w.
The Turkish rebar-to-scrap spread stood at $190-195/t, with workable levels for Turkish rebars heard up to $535-540/t FOB.
Market updates
A market participant noted, “Negotiations persisted in the ferrous scrap market, with price disagreements keeping activity slow. The market feels rather sluggish, as neither buyers nor sellers are willing to adjust their price expectations.”
Another market participant stated, “Scrap prices will remain firm amid reduced collection during the summer and a stronger euro. The euro’s appreciation is propping up European scrap prices, since scrap is gathered in euros but sold abroad in dollars.”
Offers for US/Baltic-origin HMS 80:20 mostly ranged between $345-350/t CFR, with tradable levels hovering at around $340-347/t CFR. European scrap offers were at around $347-348/t CFR.
US recyclers held firm on prices, aiming for higher offers. Sellers managed to achieve premiums of $10-15/t in the domestic market over export prices.
“US offers are hovering at around $350/t, but I am not sure mills are willing to accept these levels,” said a Turkiye-based scrap trader. “EU and Baltic offers are in the $340-344/t range, and I do not expect any deals to happen below $340/t this week.”
Suppliers want to hold prices, while mills are simply not interested, he added.
Rebar market updates
Export offers for rebar fell to $535-540/t FOB. Mills continued to grapple with soft rebar demand and high scrap costs. Turkiye’s domestic rebar sentiment remained weak.
A mill-side participant stated, “Mills are in a difficult situation with scrap prices firming. The market cannot improve much until mills begin selling rebars abroad.”
Another mill source noted, “Rebar prices keep falling, and we expect further production cuts in the coming weeks. Although the US market is strong, other regions remain weak, making scrap still costly to produce.”
Outlook
Turkish mills are currently on a buying pause, but activity may resume later this week or early next week as mills look to secure August shipment cargoes. However, falling rebar prices and the likelihood of further production cuts may keep buyers cautious in the near term.
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