- Margin squeeze, firm freight keep Turkish scrap prices rangebound
- Tight supply offsets weak rebar demand
Turkish deep-sea imported scrap prices held mostly steady on 12 February, with muted trading activity and tight margins keeping both buyers and sellers cautious. High grade HMS 80:20 was assessed at $376/t CFR, unchanged day over day, with tradable levels heard at $375-377/t CFR for US-origin material and $369-371/t CFR for EU-origin cargoes.
Price assessments
- US-origin bulk HMS 80:20: $376/t CFR Turkiye, down by $1/t w-o-w.
- US East Coast HMS 80:20: $347/t FOB, down by $4/t w-o-w.
The scrap-to-rebar spread remained at $179-180/t, with rebar export offers at $555/t FOB. One deal was reported in the $369-374/t CFR range for Belgium-origin material.
Market commentary
Participants described a largely rangebound market, with limited deals and a persistent bid-offer gap. Turkish mills signaled resistance to higher prices amid weak downstream demand, while sellers remained firm due to tight supply conditions.
Seasonal disruptions in the US, including freezing weather, continued to constrain scrap collection, supporting offer levels. In Europe, a strengthening euro against the US dollar added hesitation among exporters, reducing their appetite to conclude deals at lower dollar-denominated prices.
Freight costs also remained supportive, adding to overall CFR costs and reinforcing sellers’ firm stance.
On the demand side, subdued rebar sales weighed on scrap appetite. Turkish export rebar prices remained flat at $555/t FOB, limiting mills’ margin flexibility and reinforcing a cautious procurement strategy.
Outlook
Turkish imported scrap prices are expected to remain broadly stable in the coming week. Tight supply in the US and Europe, firm freight, and currency movements should underpin prices, while weak rebar demand and compressed mill margins are likely to restrict any significant upside.
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