- Higher freights, firmer rebar prices support offers
- Weak steel demand likely to slow further price hikes
Turkiye’s imported deep-sea ferrous scrap market strengthened during the week ended 23 July as mills returned to the market after several weeks of subdued activity to replenish inventories. Improved domestic rebar sentiment, firm freight rates, and stronger supplier confidence supported higher import prices, although finished steel demand remained relatively weak.
Price assessments
- US-origin HMS80:20 — around $375/t CFR Turkiye, up by $6/t w-o-w.
- US East Coast HMS80:20 — around $339/t FOB, up by $5/t w-o-w.
Trading activity improved as several US exporters returned to the market after a prolonged lull. US-origin HMS 80:20 offers were heard at $375-377/t CFR, while European/Baltic-origin material was indicated at $369-371/t CFR. Belgium-origin HMS 80:20 was booked at $368/t CFR, highlighting the premium for US-origin cargoes.
Firm freights continued to support the market. Freight rates from the US East Coast to Turkiye were assessed at around $36-37/t, while Rotterdam-Turkiye freights stood near $33-35/t, limiting exporters’ flexibility to reduce offer prices.
Recent trades
- US-origin HMS 80:20: booked at $375/t CFR East Marmara
- UK-origin HMS 75:25: booked at $355/t CFR Mediterranean
- UK-origin HMS 80:20: booked at $365/t CFR Mediterranean
- US-origin shredded, and PNS: booked at $395/t CFR East Marmara
- Belgium-origin HMS 80:20: booked at $368/t CFR Mediterranean
- Additional UK/Baltic-origin cargoes were rumoured but remained unconfirmed.
A Turkish trader said, “Mills have returned to the market after a slight improvement in domestic rebar prices, mainly to replenish inventories.” However, while buying sentiment has improved, it is still too early to confirm a sustained recovery in rebar demand through the third quarter, another trader added.
A market participant said, “Mills have become more flexible in negotiations to secure raw materials for upcoming production, allowing exporters to achieve higher prices.” The latest US-origin HMS 80:20 deal at $375/t CFR has become the key benchmark for Turkish import scrap prices, market participants stated.
Domestic steel market
The domestic steel market also improved during the week. Kardemir reopened rebar sales at TRY 32,000-33,000/t ($678-699/t) exw, up by TRY 950-955/t ($20/t) from its previous sales round, reportedly selling 30,000-35,000 t before closing bookings.
Other mills increased domestic rebar offers to $570-580/t exw, while some producers tested $590/t exw, although buyers considered these levels premature. Export rebar offers also increased to $575-585/t FOB, while assessed export prices remained around $570/t FOB due to limited buying interest.
The scrap-to-rebar spread remained around $195-200/t, continuing to support steelmaking margins.
Outlook
BigMint expects Turkiye’s imported scrap market to remain firm in the coming week as higher freight costs, stronger supplier confidence, improving rebar prices, and inventory replenishment continue to support import offers. However, weak finished steel demand and cautious mill purchasing are expected to limit the pace of further price increases, with market direction largely dependent on the sustainability of fresh booking activity.
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