- Weak rebar sales, ample domestic supply pressure imported offers
- EU sellers face difficulties in reducing offers amid strong euro
Turkish deep-sea imported scrap prices dropped by $25/tonne (t) w-o-w, following reports of a discounted UK-origin deal. Mills ramped up efforts to push prices lower, while sellers struggled to adjust to the sharp market decline.
BigMint’s price assessments
- US-origin HMS 80:20 bulk scrap stood at $345/t CFR Turkiye, down $25/t w-o-w.
- Bulk HMS 80:20 from the US East Coast was at $324/t FOB, down $29/t w-o-w.
The Turkish scrap-to-rebar spread stood at $210-215/t, as rebar export prices dropped w-o-w to $560/t FOB.
Imported market faces downward pressure
Indicative offers for US and Baltic-origin scrap were reported in the range of $340-350/t. Restocking demand from Turkish mills remained subdued, with buyers indicating tradable levels as low as $338-340/t CFR, influenced by the discussions surrounding the recent UK-origin deal.
A European trader informed, “The exchange rate has made current prices unworkable for EU and Baltic suppliers, and the US is not showing any flexibility either. Under the current market conditions, European recyclers face significant challenges in reducing their dollar-denominated export offers to Turkish mills.”
HMS collection costs in the Benelux region were reported at EUR 265-270/t delivered to docks. A sharply discounted ex-UK sale added pressure to the market, even though it was viewed as a one-off transaction by most market participants.
A market participant noted, “Sellers have found it difficult to follow the downtrend, weighed down by inventories acquired at higher average costs, coupled with a sharp decline in export prices and the impact of a strong euro.”
Another market participant said, “The average cost of material already collected at the docks remains considerably high. However, the gap between seller expectations and bids from Turkish mills is steadily widening.”
Recent deals
- UK-origin HMS 80:20 was booked by an Aegean region-based mill at $348/t.
- European-origin HMS 80:20 was booked by a Mediterranean mill at $335/t.
Domestic market faces supply glut, weak demand
In the domestic market, scrap availability was high, with most major suppliers holding cargoes ready for shipment. However, Turkish mills were hesitant to buy, primarily due to ongoing weak rebar demand, which weighed heavily on scrap purchasing activity. While mills need scrap for May shipments, sluggish rebar sales and tight margins mean that there is no urgency to make purchases.
As per industry insiders, domestic mills reduced scrap purchase prices due to subdued steel demand. Oyak Group’s Isdemir and Erdemir cut their prices by TRY 250/t ($6/t), with Isdemir’s domestic scrap rate at TRY 13,100/t ($345/t) and Erdemir at TRY 13,250/t. Smaller mills such as Asil Celik also reduced their prices. Market attention has now shifted to key mills such as Habas, Toscelik, ICDAS, and IDC for further price direction.
Outlook
A mill-side participant commented, “There is cargo available, but buying now could mean paying more than tomorrow,” reflecting a cautious outlook. With prices under pressure, mills are likely to stay on the sidelines, awaiting further market clarity. Another Europe-based trader highlighted that political instability, weak steel sales, tariff uncertainties, and cheaper Chinese billets are pushing the Turkish market down, with scrap prices expected to fall $8-10/t to around $328-330/t.
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