- Firm freight and tight supply support offers
- Selective mills seek September arrival cargoes
Turkiye’s imported deep-sea ferrous scrap market remained broadly stable during the week as weak finished steel demand kept mills cautious, while elevated freight costs and limited August availability supported supplier price expectations. Suppliers continued to hold firm on offers amid higher ocean freight and tighter scrap availability during the August holiday period.
For instance, freight from New Jersey to Turkiye rose to around $34-35/t, while Rotterdam-Turkiye freight reached $32-33/t, supporting replacement costs.
Meanwhile, Turkiye’s rebar export prices remained stable at around $578/t FOB, keeping the scrap-to-rebar spread at approximately $200-205/t and limiting scope for further improvement in mill margins.
Price assessments
- US-origin HMS 80:20 stood at around $376/t CFR Turkiye, inching up $1/t w-o-w.
- US East Coast HMS 80:20 stood at around $342/t FOB, down by $1/t w-o-w.
Around 6-7 trades were heard during the week. US-origin HMS 80:20 was heard at $375-376/t CFR Turkiye, while Denmark-origin HMS 80:20 was indicated at around $374/t CFR. Russia-origin material was heard at around $372/t CFR, while Netherlands-origin HMS 80:20 was reportedly sold at $367/t CFR. Meanwhile, US-origin shredded scrap offers were heard at around $390-395/t CFR Turkiye.
Market participants said US-origin scrap prices remained broadly aligned with good-quality European material, with US offers showing neither significant upward nor downward movement. Workable levels for US-origin scrap were expected to remain around $373-375/t CFR Turkiye this week.
A Baltic-origin supplier said low water levels along the Rhine, particularly around Kaub, were disrupting vessel movements, while prolonged hot and dry weather across Europe was affecting inland scrap collection and logistics. However, the impact on Turkiye’s scrap market remained limited as mill demand was subdued. Most mills had already covered their August requirements, while small and mid-sized buyers were mainly seeking end-September arrivals, reducing urgency for fresh bookings.
Domestic steel market
Turkish domestic scrap prices remained stable despite firmer imported values, with major mills unchanged since early July. Colakoglu held DKP at TRY 16,905-16,910/t ($354/t) and extra at TRY 16,380-16,390/t ($343/t); Kardemir at TRY 17,700-17,800/t ($371-373/t) and TRY 17,450-17,500/t ($365-366/t); and Erdemir at TRY 17,000/t ($371-373/t) and TRY 16,900-16,950/t ($354-355/t), respectively.
The stability reflects weak local demand and limited mill buying urgency. Turkish mills consume over 25-27 mnt of scrap annually, with around one-third sourced domestically, leaving the market import-dependent. However, weak domestic and export rebar demand kept mills from chasing higher scrap prices. Rebar offers remained at $580-600/t exw, while mills focused on immediate requirements after covering most August procurement.
Outlook
Turkiye’s imported scrap market is expected to remain stable in the coming days, with firm freight and limited availability supporting supplier offers. However, weak rebar demand, cautious mill procurement, and limited urgency among major mills to secure additional August cargoes are likely to cap further price gains.
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