- US sellers target higher offer levels
- Mills still need April shipment cargoes
Turkish deep-sea imported scrap prices edged higher on 12 March as rising freight rates supported seller sentiment amid the Middle East conflict. US origin HMS 80:20 was assessed around $376/t CFR, up $1/t d-o-d.
Market participants reported that freight costs have surged since the start of the Iran conflict. Freight from the Baltic Sea to Turkiye has reportedly increased by around $10-15/t, while US-to-Turkiye freight rates were heard at $55-60/t, also up roughly $10-15/t.
Amid the higher logistics costs, US suppliers were targeting $380-385/t CFR, while EU-origin material was heard offered around $373-375/t CFR. Tradable levels for US origin HMS 80:20 were estimated at $375-380/t CFR, while EU-origin cargoes were reported at $368-370/t CFR.
Price assessments
- US-origin bulk HMS 80:20: $376/t CFR Turkiye, up by $1/t w-o-w.
- US East Coast HMS 80:20: $344/t FOB, stable w-o-w.
The scrap-to-rebar spread remained at $180-182/t, with rebar export offers at $558/t FOB.
Around 2-3 deals were heard at $363-364/t CFR, mainly for European-origin scrap, indicating relatively softer price levels earlier in the week. Market participants noted that after a quiet period with limited trading activity, the sudden group of deals at similar price levels could be misleading and may give the impression that prices are moving lower than the actual market sentiment.
An industry participant commented, “The estimated import price for HMS 80:20 for the last weeks of March is around $370/t CFR. However, if the war in Iran continues, unpredictable fluctuations could occur in both scrap and finished steel prices.”
Market insiders reported that shortage of firm bids and offers existed as both buyers and sellers remained hesitant to commit amid volatility in energy markets and uncertainty surrounding the geopolitical situation. Suppliers were also reluctant to release material, preferring to wait for clearer market direction.
Domestic steel market
According to a major scrap processor, local scrap prices remain below $350/t. Downstream steel demand is still weak, which has limited any significant rise in scrap prices. Meanwhile, Turkish rebar export prices are hovering around $558/t FOB, largely unchanged due to sluggish buying interest.
Outlook
The Turkish scrap market is expected to remain cautious as participants monitor freight costs, energy prices, and geopolitical developments. Despite weak finished steel demand, mills still need to secure April shipment cargoes, and upcoming deals will likely guide the next price direction.
Trading activity may also slow around the Eid holidays (third week of March) in Turkiye, which could temporarily limit market participation.
Leave a Reply