- Tight supply, stronger euro keep offers elevated
- Prices expected to stay largely stable in early Feb
Turkish deep-sea imported bulk scrap prices edged higher w-o-w on 29 January, supported by firm collection costs, a stronger euro, and rising freights. However, weak rebar and hot-rolled coil (HRC) demand continued to limit mills’ buying appetite, keeping market activity subdued.
Price assessments
- US-origin bulk HMS 80:20: $377/t CFR Turkiye, up by $1/t w-o-w.
- US East Coast HMS 80:20: $351/t FOB, up by $1/t w-o-w.
The scrap-to-rebar spread remained at $182-185/t, with rebar export offers at $560/t FOB.
Market commentary
Market participants stated that the strengthening euro and rising European collection costs continued to push export prices higher. The euro strengthened against the US dollar on 29 January, compared with 23 January, increasing cost pressure on European suppliers.
Supply from both the EU and the US remained limited. European sellers faced margin pressure, while US exporters focused mainly on domestic sales, where scrap prices are expected to rise by $20-30/t in February amid strong mill demand.
In the US, market activity remained muted due to severe winter weather, although sentiment stayed optimistic on the sell side because of ongoing supply tightness.
Meanwhile, Turkish mills showed limited buying interest due to weak downstream demand. Many mills targeted prices below $370/t CFR, with workable levels capped near $375/t CFR. Several participants stated that the market was quiet, with both buyers and sellers adopting a wait-and-watch approach.
Domestic rebar and steel market
Domestic and export rebar demand remained weak, restricting mills’ ability to raise scrap procurement. Harsh winter conditions and subdued construction activity continued to weigh on steel consumption.
Turkish rebar export offers were at $555-560/t FOB, reflecting limited export enquiries. HRC demand also remained soft, adding further pressure on mills’ margins.
Another participant stated that unchanged demand conditions were likely to keep mills cautious in the near term.
Outlook
Market participants expect Turkish imported scrap prices to remain supported due to tight supply, high collection costs, and elevated freights. However, weak rebar and HRC demand, narrow margins, and cautious mill purchasing are likely to cap further upside.
Prices are expected to move within a narrow range at around current levels in early February, as cost-side support balances muted steel demand and limited trading activity.
Leave a Reply