Turkiye: Imported ferrous scrap prices edge up by $5/t amid tight supply, firm costs

• Firm scrap market despite weak rebar demand
• Winter supply tightness supports Turkish scrap

Deep-sea scrap prices in Turkiye edged higher on 15 January, supported by seasonal supply tightness amid limited seller availability and winter-related supply disruptions, while cautious mill buying and tight scrap-to-rebar margins continued to restrict further upside.

Import scrap levels edged up w-o-w by $5/t amid limited sellers, muted trading activity, and tightening mill margins. High-grade HMS 80:20 import prices in Turkiye rose slightly to around $374-376/t CFR, with tradable levels at $370-372/t CFR. Offers for US or high-grade-origin material were reported as high as $380/t CFR, with further upside expected.

Price assessments

• US-origin bulk HMS 80:20: $376/t CFR Turkiye, up by $5/t w-o-w.
• US East Coast HMS 80:20: $350/t FOB, up $4/t w-o-w.

Scrap-to-rebar spread: $178-182/t, with rebar export offers at $555/t FOB

Recent bulk deal:

• US-origin HMS 80:20 cargo booked by a Mediterranean-based mill at $376/t CFR.
• UK-origin cargo with HMS 80:20 was sold to a West Marmara-based mill at $368/t CFR.
• UK-origin cargo with HMS 80:20 booked at $367/t by a Mediterranean-based mill on a CFR basis.
• A Baltic-origin cargo with 25,000 t of mixed materials (20,000 t of HMS 80:20 at $370/t and 5,000 t of bonus material at $390/t) booked by a Mediterranean-based mill.

Market commentary

A major trading house representative noted, “Very few offers remain available right now–European suppliers are grappling with severe weather disruptions that have hampered collections and logistics.”

Prices stayed supported as winter weather disrupted European scrap collection, lifting costs into the high Euro 270s ($314/t), while limited US scrap availability persisted amid stronger domestic market prices.

Another market participant stated that “monitored fluctuations in the euro-US dollar exchange rate and rising freight costs, driven by higher oil prices, added upward pressure on offers.”

Domestic market updates

Turkish mills, however, continue to resist higher prices amid negative margins and weak rebar demand, increasingly shifting procurement toward short-sea and domestic scrap to limit deep-sea exposure. While billet prices remain high and rebar prices were lifted slightly, extended payment terms have failed to revive demand, keeping market sentiment cautious.

Outlook

Turkish scrap prices are expected to remain firm in the near term, supported by supply tightness and exporter confidence. However, weak finished steel demand and cautious mill buying are likely to limit sharp price increases.