- Only 17-18 cargoes booked in Aug, lower than expected 20-24
- Billet prices soften, finished demand unlikely to recover soon
Turkiye’s deep-sea imported ferrous scrap prices slipped by $3/tonne (t) w-o-w, with September starting quietly as sluggish finished steel demand locally and in overseas markets suppressed buying interest.
Scrap bookings in August totalled only 17-18 cargoes, below the expected 20-24, as mills kept purchases measured amid weak summer steel sales. Suppliers held offers firm early in the month amid slower yard inflows, but demand stayed muted, leading to a supply overhang.
Price assessments
- US-origin bulk HMS 80:20 was assessed at $343/t CFR Turkiye, down by $3/t w-o-w.
- Bulk HMS 80:20 from the US East Coast stood at $313/t FOB, a decrease of $3/t w-o-w.
The Turkish rebar-to-scrap spread remained at $194-195/t, with workable rebar export prices heard at $540-545/t FOB, though buyers have yet to show any interest at this level.
Market updates
Tradable values for US/Baltic-origin HMS 80:20 were indicated at $340-344/t CFR, while EU-origin HMS 80:20 was heard at $335-338/t CFR.
Participants pointed to weak sentiment, observing that subdued finished steel demand continued to weigh on buying interest for imported scrap.
The market entered September showing no signs of recovery, with only previously concluded contracts surfacing. Exporters postponed new sales, while Turkish buyers stayed cautious, targeting lower price levels.
Domestic market
In the domestic market, local billet prices in Turkiye softened after Kardemir issued a new tender in Karabük, offering 150 x 150-mm billets at $490-500/t exw, compared with its earlier tender on 14 August, priced at $500-510/t exw. The mill sold 54,150 t before closing its sales.
Outlook
With demand for finished steel showing little sign of revival, Turkish mills are expected to maintain a cautious buying approach in the near term. Exporters may continue to hold back on new offers, while buyers remain focused on achieving lower prices.
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