- Steelmakers begin restocking scrap amid low inventories
- Mills push for higher rebar tags to offset rising input costs
Turkish deep-sea imported scrap prices saw a slight increase of up to $5/tonne (t) w-o-w, as sellers held firm despite limited buying interest. As a result, Turkish mills accepted higher scrap prices, supported by improved demand and stronger sales in the finished long steel segment, even though overall market activity remained relatively slow.
BigMint’s price assessments
- US-origin HMS 80:20 bulk scrap stood at $347/t CFR Turkiye, up $5/t w-o-w
- Bulk HMS 80:20 from the US East Coast was at $324/t FOB, up $3/t w-o-w.
The Turkish rebar-to-scrap spread stood at $200-210/t, with workable levels for Turkish rebars heard up to $555-565/t FOB.
Approximately 7-8 deep-sea deals were concluded over the past week in the $337-347/t CFR range.
Market commentary
Turkish steel mills paid higher prices for deep-sea scrap this week amid low inventory levels for June shipment cargoes. To offset rising input costs, they also tried to increase finished steel prices.
A trader noted that Turkish steelmakers were gradually restocking with June shipments. However, mills tried to slow the pace of price hikes, fearing that higher scrap costs may not be fully passed on through finished product sales.
Sell-side participants maintained offers for US/Baltic-origin HMS 80:20 mostly within $347-348/t CFR. Most US suppliers offered material at $350/t, but no firm bids were received so far. Meanwhile, European offers ranged between $338-345/t.
Despite a weaker dollar, dock prices continued to rise, with HMS collection costs in the Benelux region recently reported at EUR 265-270/t delivered to docks.
Domestic market scenario
A trader noted, “Turkish steelmakers are not aggressively pushing for higher rebar prices, which has limited any significant upward impact on domestic scrap tags. While scrap suppliers are trying to raise their offers, buyers remain cautious and are resisting the increases.”
Meanwhile, KARDEMIR opened billet sales today and sold 57,000 t to various mills at $500/t, against $485/t previously. Although this is a positive signal for the market, it was not yet strong enough to prompt a sharp rise in scrap prices.
Outlook
In the near term, market participants expect prices to remain mostly stable in upcoming deals. However, sentiment is turning slightly optimistic. A US-based recycler expected prices to hit $360/t, while others believed $350/t CFR as a realistic target in the short run.
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