- Offers remain firm amid elevated freights, high collection prices
- Mills’ need for 14-15 cargoes for Jun continues to support scrap prices
Turkish deep-sea imported scrap prices softened slightly in the week ended 21 May, with HMS 80:20 assessed around $412/t CFR amid muted trading activity, cautious mill buying, and softer market sentiment following public holidays in Turkiye. Mills largely stayed away from fresh bookings during the week as participants waited for clearer direction to emerge in the finished steel market. Weak construction demand led to sluggish rebar sales and pressured mill margins.
Price assessments
- US-origin bulk HMS 80:20: $412/t CFR Turkiye, down by $1/t w-o-w
- US East CoastHMS 80:20: $378/t FOB, down by $1/t w-o-w
A Europe-origin scrap deal was heard during the assessment period at around $406/t CFR Turkiye.
The scrap-to-rebar spread remained narrow at $177-179/t, keeping pressure on mill margins, while Turkish export rebar prices stayed stable near $590/t FOB.
Despite softer sentiment, market participants said Turkish steelmakers still need to secure around 14-15 additional cargoes for June shipments, which continued supporting prices.
Market comments
A market participant said, “Turkish mills are trying to push scrap prices slightly lower, but suppliers remain firm due to elevated freight costs, strong collection prices, and rising energy costs linked to Middle East tensions. High oil prices continue supporting global scrap values.”
Suppliers, particularly from the US, largely maintained firm offers amid stronger domestic scrap prices in the US market and limited availability of premium cargoes.
Another supplier-side source stated, “US exporters are still targeting around $415-420/t CFR for premium cargoes, while domestic scrap prices in the US are also increasing.”
A Baltic trader noted, “Most mills are purchasing only for immediate production needs because finished steel demand remains weak and rebar margins are under pressure.”
Domestic scrap prices in Turkiye increased in local currency terms during the week, with several Marmara-based mills raising buying prices by TRY 200-300/t ($4-7/t) amid continued lira depreciation and efforts to secure additional local scrap volumes.
Market participants estimated Turkish mills are operating at around 60-65% capacity utilisation, allowing producers to meet nearly half of their scrap requirements through domestic procurement. Local scrap remained more competitive than imported cargoes, although dollar-denominated buying levels effectively softened due to the weaker lira.
Meanwhile, domestic rebar offers were heard at $600-615/t exw, while weak construction demand and slow rebar sales continued to pressure mill profitability and limit aggressive scrap procurement.
Outlook
BigMint expects Turkish imported scrap prices to remain broadly stable in the coming days as mills gradually return to the market for June-shipment bookings. Elevated freight costs, firm US domestic scrap prices, and limited premium cargo availability are likely to continue supporting seller offers. However, weak rebar demand, cautious hand-to-mouth buying, and squeezed mill margins may continue to restrict aggressive price increases in the upcoming days.
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