- Mills expected to conclude more deals ahead of Eid
- Mills hike local purchase prices by TRY 150-350/t
Turkish deep-sea scrap prices rose by $6/tonne (t) w-o-w following a confirmed US-origin sale at a higher price.
Turkiye’s local scrap prices fell in dollar terms despite rising in Lira, as the national currency plunged nearly 7% in the first half of this week. Mills raised local scrap purchase prices by TRY 150-350/t ($4-9/t), but the sharp lira devaluation caused dollar-based prices to drop by $14-20/t, depending on the grade.
However, the strengthening Euro continued to support European seller sentiment, even as negotiations remained sluggish.
With import scrap prices firm, mills are increasingly sourcing locally for better terms and quicker deliveries. However, the volatile Lira has unsettled the market, prompting many players to reassess their positions.
According to market participants, indicative offers from sellers of US-origin HMS 80:20 were aiming for $385-390/t CFR, while Eurozone sellers targeted slightly lower levels of $380-385/t CFR.
However, buyers remained firm at $375/t CFR or below that level, which sellers found unacceptable, resulting in limited negotiations.
According to BigMint’s bulk scrap trade tracker, eight to nine deals were concluded in the last seven days – mostly from the US, Baltic, UK, and Europe at $375-381/t CFR Turkiye.
According to market participants, Turkish mills are expected to conclude 10-15 additional cargoes for April shipment, with around 10-12 days left before the market winds down for the Eid ul-Fitr holidays.
Domestic market
Some mills kept local scrap offers steady, but the dollar-converted prices still fell by $14-24/t due to the currency weakness.
Scrap collectors, meanwhile, continue to resist price cuts, citing high collection costs, limited availability, and steady domestic demand. Some mills are hesitant to book more scrap, citing weak rebar demand.
As currency volatility unsettles the market, mills have shifted focus toward domestic scrap sources, seeking more favourable payment terms and shorter lead times.
BigMint’s price assessments
- US-origin HMS 80:20 bulk scrap stood at $381/t CFR Turkiye, up $6/t w-o-w.
- Bulk HMS 80:20 from the US East Coast was at $359/t FOB, up $5/t w-o-w.
Recent deals
- US-origin to Mediterranean-based mill: 30,000-t HMS 95:5 at $394/t and shredded at $399/t.
- UK-origin to Aegean-based mill: HMS 80:20 at $375/t.
- Baltic-origin to Aegean-based mill: HMS 80:20 at $375/t.
- Europe-origin to Mediterranean-based mill: HMS 80:20 at $375/t.
- US-origin to Mediterranean-based mill: HMS 80:20 at $381/t.
- Baltic to West Marmara Region: HMS 80:20 at $380/t, shredded and bonus at $400/t.
- US-origin to Aegean-based mill: HMS 80:20 at $380/t.
- US-origin to West Marmara-based mill: HMS 80:20 at $380/t and shredded at $400/t.
Rebar market
A market participant noted, “Several Turkish producers have temporarily withdrawn rebar offers to reassess market conditions. The pullback appears to be confined to the domestic market, with no significant disruptions reported in overseas trade relationships.”
The Turkish scrap-to-rebar spread remained range-bound w-o-w at $194-195/t. Rebar export prices inched up w-o-w to $570-575/t FOB.
Outlook
Looking ahead, market participants anticipate a pickup in finished steel demand after Ramadan. Export activity is expected to gain traction, with traders projecting a potential price increase of $5-10/t. Fresh offers for HMS 80:20 to Turkiye could edge up to $390/t or beyond once post-Ramadan buying resumes.
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