- Suppliers keep scrap offers firm amid stronger euro
- Mills lift local scrap prices amid rising imported tags
Turkish deep-sea scrap prices rose by $8/tonne (t) w-o-w as sellers held firm amid a stronger euro. However, Turkish mills showed resistance, with activity remaining slow on extremely high rates from US-based suppliers.
Although the market appeared to be quiet, there were several discreet bookings, which indicates sustained demand beneath the surface.
Some Turkish mills, operating on 30-90-day letter of credit (LC) terms for deep-sea cargoes, actively sought April shipments and were open to paying slightly higher prices to secure material.
According to BigMint’s bulk scrap trade tracker, 7-8 deals were concluded in the last seven days – mostly from the US, UK, Netherlands, and Baltic region – at $360-374/t CFR Turkiye.
BigMint’s price assessments
- US-origin HMS 80:20 bulk scrap stood at $375/t CFR Turkiye, up $8/t w-o-w.
- Bulk HMS 80:20 from the US East Coast was at $354/t FOB, up $9/t w-o-w.
Recent deals
- US to Aegean region: HMS 85:15 at $376/t, shredded at $393.5/t
- US to Aegean region: HMS 80:20 at $374/t
- UK to Mediterranean region: HMS 80:20 at $360/t, bonus at $380/t
- Baltic to Aegean region: HMS 90:10 at $370/t, bonus at $393/t
- EU to West Marmara Region: HMS 80:20 at $365.5/t, bonus at $388/t
- UK to West Marmara Region: HMS 80:20 at $367/t
- Netherlands to West Marmara Region: HMS 80:20 at $367/t
- France (short sea) to East Marmara Region: 5,000 t of HMS 80:20 at $355/t
The Turkish scrap-to-rebar spread narrowed w-o-w to $195-196/t from $198-200/t. Rebar export prices remained stable w-o-w at $565-570/t FOB for April shipments, with limited interest from overseas buyers.
Imported scrap market
A major European scrap supplier stated, “Despite a seemingly slow few days, discreet bookings are keeping the market active. Denmark- and US-origin cargoes were reportedly sold to Aegean-based mills mid-week, though details remain undisclosed. Fresh US bulk offers for HMS 80:20 at $385-390/t CFR Turkiye are further testing buyers’ resistance.”
Additionally, US-origin HMS 80:20 cargo was speculated to have been sold at $382-383/t CFR to an Iskenderun-based mill.
According to another US-based trader, indicative offers for US and Baltic-origin HMS 80:20 were at $380-390/t CFR, while buyers were willing to trade at around $375-377/t CFR. Meanwhile, EU suppliers aimed for $370/t CFR and above.
Domestic market
Towards the last weekend and early this week, Turkish mills hiked local scrap purchase prices by TRY 250-500/t ($5-12/t) in response to rising imported tags. However, Kardemir, Alter, and Cansan Metalurji kept their quotes unchanged, while lira depreciation slightly reduced dollar-based prices by $1/t.
In the middle of last week, DKP (Busheling grade) climbed to TRY 13,355/t ($371/t) and extra grade to TRY 12,830/t ($351/t), both up TRY 250/t ($7/t). Insiders expect further hikes if imported scrap prices continue their uptrend.
Rebar market
A mill-side source noted, “Mills are focusing on finished steel sales to offset rising production costs. However, demand for rebar remains muted. At current scrap prices, producing rebars or HRCs is unprofitable. Mills are cutting back on scrap purchases and turning to competitively priced billets from Asia.”
Outlook
Scrap prices are set to rise further, driven by firm supplier sentiment and April cargo demand. However, buyers may resist offers above $380/t CFR unless rebar sentiment improves. With costly imports squeezing margins, Turkish mills are relying more on domestic scrap, a trend likely to persist if global prices climb further in the coming days.
Article from Bigmint
