- US suppliers prioritise domestic sales, limiting fresh offers to Turkish buyers
- Firm freight rates restrict scope for further discounts in imported scrap
Turkiye’s imported ferrous scrap prices declined during the week ended 15 October, with weak finished steel demand, limited buying interest, and scarce offers from US suppliers keeping trading activity muted. Falling rebar prices continued to put pressure on scrap procurement levels, while elevated freight costs limited the scope for further discounts. Market participants reported mixed sentiment, with buyers largely adopting a cautious approach amid uncertainty over the market’s future direction.
Fresh deals included Netherlands-origin HMS 80:20 sold to a Mediterranean-based mill at $385/t CFR and UK-origin HMS 80:20 booked by an Aegean-based mill at $388/t CFR.
Baltic traders indicated that US-origin HMS 80:20 could trade at $395-400/t CFR, in line with prevailing market levels. Additional UK-origin cargoes were reportedly booked at $388-390/t CFR.
Price assessments
- US-origin HMS 80:20 stood at around $398/t CFR Turkiye, down by $6/t w-o-w.
- US East Coast HMS 80:20 stood at around $358/t FOB, down by $9/t w-o-w.
Limited US and Baltic offers, alongside firm freight rates, continued to support import prices despite subdued demand. Market insiders also noted that US suppliers were increasingly prioritising domestic sales, restricting the availability of fresh offers to Turkish buyers.
Domestic steel market
Turkiye’s domestic and export rebar markets remained under pressure from weak demand, high inventories, and financial uncertainty.
A local supplier reported that a domestic billet producer sold over 100,000 t of billet at $575/t exw to Turkish re-rollers. The sizeable transaction, following a prolonged period without a deal of similar scale, suggests renewed buying interest among some downstream consumers despite generally subdued steel demand.
Domestic rebar offers declined to $610-630/t exw, while export offers fell to $615-620/t FOB. Other sources indicated export rebar offers around $620/t FOB, with BigMint assessing rebar prices at $615-616/t FOB. The scrap-rebar spread stood at approximately $218-220/t.
Ship recycling market: Turkiye’s ship recycling market remained soft, with price indications broadly in line. Indicative prices stood at $320-330/LDT for container vessels, $300-315/LDT for tankers, and $290-300/LDT for dry bulk vessels. However, vessels containing valuable non-ferrous metals could attract higher offers depending on their composition.
Outlook
Turkiye’s scrap market is expected to remain subdued in the coming days, as weak rebar demand, high inventories and cautious mill procurement continue to weigh on buying activity. Falling rebar prices may exert further pressure on scrap values, while elevated freight costs and limited US-origin offers could provide some support. Market direction will depend on fresh deep-sea bookings, steel demand and whether the recent large-volume billet sale leads to sustained buying.
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