Turkiye: Imported bulk scrap prices rise by up to $6/t w-o-w amid restocking activity

• Scrap buying picks up amid low mill inventories
• Weak rebar sales, Chinese billet imports cap demand

Turkiye’s deep-sea ferrous scrap import prices rose by up to $6/tonne (t) w-o-w to around $345/t CFR amid restocking activity. While the market showed signs of recovery, buying activity was cautious, with mills selectively booking cargoes to replenish inventories rather than engaging in aggressive purchasing.

Although Turkish mills re-entered the market, overall demand was still restrained due to weak rebar sales and competition from low-priced Chinese billets, offered at $455-460/t CFR. Approximately 9-10 deep-sea deals were concluded over the past seven days in the $336-345/t CFR range.

BigMint’s price assessments

• US-origin HMS 80:20 bulk scrap stood at $345/t CFR Turkiye, up by $6/t w-o-w.
• Bulk HMS 80:20 from the US East Coast was at $320/t FOB, up $5/t w-o-w.

The Turkish rebar-to-scrap spread stood at $195-200/t, with workable levels for Turkish rebars heard up to $540-545/t FOB.

Recent deals

• A US-origin cargo of HMS 80:20 and shredded/bonus was sold at $345/t CFR and $365/t to a Mediterranean mill.
• US-origin HMS 80:20 was sold at $345/t CFR to another Mediterranean mill.
• Two Baltic cargoes were sold to an Aegean-based mill, both HMS 80:20 at $3342/t CFR.
• A US-origin cargo comprising HMS 90:10 were sold at $345/t CFR to an Aegean mill.
• Two Baltic cargoes were sold to a West Marmara-based mill, both with HMS 80:20 at $339.5/t CFR and bonus at $359.5/t CFR.
• 25000 t of US-origin HMS 80:20 and PNS were sold at $345/t and $365/t CFR to an Aegean mill.
• EU-origin HMS 80:20 and busheling were traded at $340/t and $370/t CFR East Marmara.
• Netherlands-origin HMS 80:20 were booked at $336/t CFR Mediterranean.

Market commentary

This week, there was increased buyer interest, with multiple deals reported. Mills showed strong appetite for raw materials, but weak finished product demand was a key hurdle. Nevertheless, overall sentiment among Turkish mills appeared to be gradually improving.

However, a Turkish trader stated, “Buyers remain cautious and capped bids at $345/t for US-origin, $340-342/t for Baltic, and $335-338/t for European scrap. This is not driven by strong demand. Mills are simply refilling spot stocks as finished steel sales remain weak.”

A participant stated, “Mills, heavily reliant on scrap, are unlikely to delay purchases for long, as inventory needs to grow.”

Offers for US/Baltic-origin HMS 80:20 mostly ranged between $345-348/t CFR, with tradable levels hovering at around $336.5-345/t CFR. European sellers remained firm, backed by a strong euro against the US dollar.

In the import market, CIS-origin billets were booked at $460-465/t CFR during the latter part of the week. Some unconfirmed trades were heard at $450-455/t CFR. Additionally, Chinese billets were reportedly sold at $452/t CFR earlier in June, with nearly 50,000 t expected to arrive in the Marmara region.

Domestic market

Local suppliers, including Kardemir, kept offers steady at $495-505/t exw. Kardemir sold about 10,000 t at $500/t exw, while Iskenderun-based producers sold smaller lots at $495/t exw.

Outlook

Scrap prices are likely to remain range-bound in the near term as Turkish mills slow down bookings for July. However, although market participants noted that mills remain keen to restock, subdued demand for finished steel continues to weigh on overall momentum. That said, sentiment in Turkiye appears to be gradually improving.