Turkiye: Imported scrap prices edge up by $4/t w-o-w amid supply tightness

• Sellers lift offers, supported by higher freight costs
• Expectations of market recovery boost sentiment

Turkiye’s deep-sea imported ferrous scrap market showed a slight increase of $4/tonne (t) w-o-w, breaking the recent streak of continued declines. The price rise was largely supply-driven rather than demand-led, as material availability remained limited.

Overall, market sentiment improved due to tighter supply and Turkish mills securing October shipments. Despite weak domestic demand, suppliers lifted offers in response to rising freight costs. Sentiment was also boosted by expectations of a short-term market recovery.

“Prices had fallen too much, and the recent upward correction came on mutual market interest. Most targeted bookings for late October are already done. However, high freight costs and the strong US dollar remain hurdles,” said a Turkiye-based trader.

Price assessments

• US-origin bulk HMS 80:20 was assessed at $339/t CFR Turkiye, up by $4/t w-o-w.
• Bulk HMS 80:20 from the US East Coast stood at $306/t FOB, up by $3/t w-o-w.

The Turkish rebar-to-scrap spread remained at $195-200/t, with workable rebar offers at $540-545/t FOB, slightly higher than last week’s $535-540/t.

Market updates

Around 2-3 cargoes were heard. Steelmakers typically book 20-24 deep-sea scrap cargoes monthly, but only 10-12 deals have been verified so far in September.

Tradable values for Baltic/US-origin HMS 80:20 were at $335-338/t CFR, while EU-origin HMS 80:20 was assessed at $332-333/t CFR as mills sought October cargoes. Freights were steady w-o-w at $42-45/t.

“October bookings are not fully done yet, as buyers can still secure October shipments during October itself. Buying will continue in the last week of September, with prices likely hovering in the $330-340/t range depending on origin. Europe’s prices seem stable, while US ones are edging up.”

As per another US-based trader, rising freight and firm collection costs, fuelled by the grain season and European coal stockpiling ahead of potential Russia-related sanctions, are likely to push Turkish scrap prices higher.

Domestic market

Locally, For Turkish billet prices some mills continued to seek October cargoes, while downstream offers held at $540-545/t FOB. Despite weak long steel demand, rising costs are expected to keep scrap prices firm in the short term.

Outlook

Market participants remain cautious, closely monitoring supply availability, freight developments, and steel demand trends. Prices are expected to hold firm in the near term, with upside potential if supply tightens further.