- Sluggish market due to Eid, mills in no rush to buy
- Turkish mills grappling with weak domestic steel demand
Turkish deep-sea imported scrap prices dipped $3/t w-o-w amid sluggish market activity, as both buyers and sellers stayed on the sidelines, awaiting key updates on tariffs and trade conflicts.
Demand remained weak from Turkish buyers during the Eid holidays, with only limited buying by mills.
The market is quiet with price uncertainty prevailing, as limited trade activity persisted throughout the week.
A scrap yard owner said, “Turkish mills are remaining silent. The last deal was from the US at $382.5/t for HMS 80:20, but now buyers are bidding at $365/t — a level sellers are unwilling to accept.”
HMS collection costs in the Benelux region were reported at Euro 300-305/t ($332-338/t) delivered to docks during the middle of the week.
Around 23-25 bulk vessels have been booked throughout this month.
BigMint’s price assessments
- US-origin HMS 80:20 bulk scrap stood at $379/t CFR Turkiye, down $3/t w-o-w.
- Bulk HMS 80:20 from the US East Coast was at $356/t FOB, down $3/t w-o-w.
The Turkish scrap-to-rebar spread widened w-o-w to $198-200/t as rebar export prices inched up w-o-w to $576-578/t FOB.
Another mill-side source noted, “With just three business days this week due to Eid, making buying or selling decisions has become difficult, and Turkiye has secured ample material for April and May shipments, so mills can afford to wait another week.”
A market participant said, “European suppliers anticipated higher domestic prices, but that did not materialise. As a result, Turkish mills now need just three to four cargoes for April, while 15 offers are available.”
Meanwhile, European workable levels remained uncertain due to euro volatility, prompting recyclers to swiftly adjust dollar-based export offers. Last week, the Europeans could have sold $7-8/t cheaper, but the exchange rate dropped, making that unfeasible, and the larger recyclers still seek to lower prices to secure scrap at cheaper levels.
According to market insiders, reported indicative offers for US-origin premium HMS 80:20 are at $378-380/t CFR. Meanwhile, tradable values for EU-origin HMS 80:20 were mostly at $370-372/t CFR, with activity concentrated at the lower end.
Domestic scrap market
Domestic scrap suppliers remained firm, seeing little room for purchase price cuts by steel mills. Even if April domestic settlements drop, they will still be higher than deep-sea scrap prices.
Outlook
Turkish scrap demand is expected to stay muted in the near term, with mills grappling with weak finished steel sales. The extended nine-day Eid holidays will weigh on buying interest, keeping prices around $370-375/t CFR post-holiday.
While EU recyclers anticipate stronger demand for May shipments, a sustained rebound in scrap purchases is uncertain, given sluggish rebar demand and cautious mill purchase strategies.
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