Turkiye imported scrap market sees limited upside as buying interest remains selective

• US suppliers resist lower levels despite cautious Turkish buying
• Most mills have covered August needs, reducing spot urgency

Turkiye’s imported deep-sea scrap market remained broadly stable during the week ended 20 August, with fresh bookings reported at mostly unchanged levels. However, buying interest remained selective as weak finished steel demand limited mills’ willingness to accept higher scrap prices. Tight availability and elevated freight costs continued to support supplier expectations.

Price assessments

• US-origin HMS 80:20 stood at around $375/t CFR Turkiye, down by $1/t w-o-w.
• US East Coast HMS 80:20stood at around $341/t FOB, down by $1/t w-o-w.

Around 4-5 deals were reported during the week, with US-origin HMS 80:20 booked at around $375/t CFR Turkiye and Polish HMS 80:20 heard at $370-373/t CFR. A US HMS 85:15 cargo was also booked at around $379-380/t CFR, while a Denmark-origin HMS 80:20 cargo was reportedly booked at around $374/t CFR, bringing European scrap increasingly close to recent US levels. US suppliers were targeting around $377/t CFR, although mills remained reluctant to pay above $375/t CFR for HMS 80:20.

European suppliers were generally seeking $370/t CFR or higher, while short-sea scrap from the Black Sea and Greece was available at around $340/t CFR and above. US shredded and bonus material were heard at around $395/t CFR.

Freight and availability

Freight remained supportive, with New Jersey-Turkiye rates around $35-36/t. Tight European availability, low Rhine water levels and Black Sea disruptions added to replacement costs. However, buying urgency remained limited as most mills had already covered their August requirements. Smaller and mid-sized buyers were mainly looking for late-September arrivals, keeping fresh spot activity relatively subdued.

Domestic steel market

Turkiye’s domestic scrap market remained stable as weak local demand limited mill buying urgency. Rebar export prices were around $580/t FOB Turkiye, keeping the scrap-to-rebar spread near $200-205/t and limiting room for higher scrap prices.

Domestic mills continued to focus on immediate requirements, while subdued domestic and export rebar sales discouraged aggressive scrap procurement. This kept both domestic and imported scrap markets largely range-bound.

Outlook

Turkiye’s imported scrap market is expected to remain range-bound, with limited European availability, firm freight and supplier resistance continuing to support offers. However, mill-side urgency remains low, as most buyers have covered August requirements and are largely looking for late-September arrivals. Weak rebar demand and squeezed margins should keep mills cautious, limiting their willingness to chase higher scrap prices.