- Asian billet offers pressure Turkish scrap market
- Summer slowdown limits scrap collection
Turkiye’s deep-sea ferrous scrap import prices remained largely stable w-o-w, hovering around $345/t CFR. Market activity stayed muted amid the seasonal summer slowdown across Europe and persistently weak finished steel sales in the domestic Turkish market.
Trading inquiries from mills remained limited, with most buyers pausing procurement amid falling domestic steel prices. Mills continued to hold back on bookings, awaiting clearer signs of recovery in end-user demand and export activity.
Adding to the pressure, competitively priced Asian billet offers and persistently weak rebar demand have weighed on sentiment in Turkiye’s steel sector. Market participants observed that current scrap price levels are unworkable for sellers holding inventory, leading to an inactive and cautious trading scenario.
BigMint’s price assessments
- US-origin HMS 80:20 bulk scrap stood at $345/t CFR Turkiye, stable w-o-w.
- Bulk HMS 80:20 from the US East Coast was at $321/t FOB, up $1/t w-o-w.
Last week, around four to five imported scrap deals were concluded at price levels ranging from $337-345/t.
The Turkish rebar-to-scrap spread stood at $195-200/t, with workable levels for Turkish rebars heard up to $540-545/t FOB.
Market updates
A market participant noted: “Several Turkish buyers are still seeking cargoes for end-July shipment, but their target prices remain quite low. From next week onward, attention is likely to shift toward securing shipments for the first half of August.”
A market participant commented, “Scrap suppliers are trying to keep prices firm despite weaker market conditions. Lower summer collection rates and a stronger euro against the US dollar are factors limiting downward price adjustments. European scrap is collected in euros but exported in dollars, so exporters are reluctant to lower offers despite subdued demand.”
Offers for US/Baltic-origin HMS 80:20 mostly ranged between $345-348/t CFR, with tradable levels hovering around $340-345/t CFR. European scrap offers were around $340/t CFR, as sellers held firm, supported by the stronger euro.
A Europe-based scrap supplier informed, “Offers from Baltic and EU origins are around $340/t with room for negotiation. US-origin material is workable at $345/t, though some US suppliers are quoting as high as $350/t — but buyers aren’t biting. It’s desperate times for both sides right now.”
Domestic market
Mills are struggling with sluggish demand and weak prices for finished long steel in both domestic and export markets, leading them to curb their scrap buying.
Turkiye’s long steel producer Kardemir, located in the Karabuk region, launched a billet tender last week, lowering its prices to $485-495/t exw from $495-505/t.
Turkish mills’ appetite for scrap has plunged amid exceptionally weak rebar demand. Some producers are ready to sell rebar at $530/t exw, so they are pushing for lower scrap prices. However, scrap sellers are holding firm and are unwilling to reduce prices.
Outlook
Turkiye’s scrap market is expected to remain cautious as mills limit purchases amid weak rebar demand. While August shipments are needed, buyers may hold off, anticipating price support only if Chinese billet prices rise or domestic steel demand picks up.
Leave a Reply