- US-origin deals boost prices, lift market sentiment
- Limited European supply keeps offers firm, high
Imported deep-sea ferrous scrap prices in Turkiye rose by $3/tonne (t) w-o-w on the back of a fresh US-origin deal and firm prompt demand from local mills. Around 5-6 cargoes were booked over the past week at $345-356/t.
Bullish freights added further support, with Handymax rates from the US to Turkiye heard at around $45/t, according to a shipping agent. Scrap collection costs in Europe were reported at EUR 245-250/t ($283-288/t) delivered to docks.
Price assessments
- US-origin bulk HMS 80:20 was assessed at $354/t CFR Turkiye, up by $3/t w-o-w.
- Bulk HMS 80:20 from the US East Coast stood at $328/t FOB, up by $6/t w-o-w.
The Turkish scrap-to-rebar spread remained at $190-195/t. Rebar offers stood at $540-545/t FOB.
Market scenario
Tradable values for US-origin or premium HMS 80:20 were heard at $350-356/t CFR. In the US, limited inbound flows kept recyclers targeting offers at or above $355/t CFR, while buyers remained hesitant to accept higher prices.
A market participant commented, “Supply in Europe has tightened. Those holding material are delaying sales, expecting higher prices soon.”
A trader commented, “The market currently has limited offers, with tight supply driven by strong demand from Egypt and Europe. Suppliers are unlikely to rush sales in the short term.”
Domestic market updates
Domestic rebar demand rose, supporting market sentiment. Turkish steelmakers, however, continued to face weak finished steel sales in both export and domestic markets, while raw material inventories remained low during August-September.
Outlook
Tight deep-sea supply, firm freights, and improved domestic steel sentiment are expected to keep imported scrap prices supported in the near term. Any slowdown in rebar demand or increased European export availability, however, could limit further upside.
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