- Freight pressure limits trade activity
- Mills cautious as margins remain tight
Turkish deep-sea imported scrap prices increased w-o-w, with HMS 80:20 assessed at around $378-380/t CFR. Trading activity remained muted during the week, with no fresh deals reported, as elevated freight rates and uncertain market conditions discouraged both buyers and sellers from entering the market.
Price assessments
- US-origin bulk HMS 80:20: $380/t CFR Turkiye, up by $4/t w-o-w.
- US East Coast HMS 80:20: $348/t FOB, up by $4/t w-o-w.
The scrap-to-rebar spread increased to $192-193/t, with rebar export offers at $580/t FOB. This tightening margin has limited mills’ willingness to accept higher scrap prices, especially as export demand for finished steel remains relatively subdued.
Market updates
A market participant commented, “The scrap market remained unusual this week, with both buyers and sellers active but unable to agree on prices. Mills’ counter bids were largely rejected as sellers targeted $385-390/t CFR for US-origin scrap amid sharply rising freight costs.”
Freight from the Baltic Sea region, including Poland, was heard around $50-55/t, while bunker fuel prices surged to around $1,500/t, further increasing shipping costs.
Another market participant said, “Deep-sea scrap offers were last heard around $385-390/t CFR for US-origin HMS 80:20 and $378-380/t CFR for EU-origin material.
Market activity remained limited amid freight and energy uncertainties, with no major deals reported. A cargo concluded last week in the $370s/t CFR was viewed as a special case, while market sentiment indicates a gradual upward trend.”
Suppliers were also reported to be holding back cargoes while monitoring freight developments and broader market sentiment. Meanwhile, many Turkish mills are reluctant to pay above $370-374/t CFR, reflecting continued caution amid uncertain cost conditions and weak downstream demand.
Domestic steel market
Mills continued to push export offers higher to $580-590/t FOB, while workable levels remained at $570-575/t, as they attempted to improve margins amid subdued buying interest.
Turkish mills stayed cautious due to weak finished steel demand, slowing exports, and suspended trade with Iran, limiting scrap trading despite rising costs.
Outlook
The Turkish scrap market is expected to remain cautious in the coming days as market participants monitor freight costs, energy prices, and geopolitical developments. Trading activity has stayed subdued ahead of Eid al-Fitr, with today marking Arefe, the final day of Ramadan.
Market participants expect activity to resume next week with fresh bookings for April shipments. Although mills have resisted current seller offers, sources expect some adjustment, with potential US-origin scrap deals emerging near $385/t CFR once trading resumes.
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