Turkiye: Deep-sea scrap prices firm w-o-w but weak demand caps trades

• Mills covered for April; delay fresh bookings
  
  
• Widening bid-offer gap restricts fresh bulk deals
  
  

Turkish deep-sea scrap prices showed slight strength during the week, as assessed on 16 April, supported by limited availability from US and EU suppliers. HMS 80:20 was assessed at around $403-404/t CFR, remaining largely stable towards mid-week, as constrained supply continued to underpin the market.

Trading activity remained subdued, with the bid-offer gap continuing to widen. Turkish mills targeted around $398-400/t CFR for US-origin HMS 80:20, while sellers held firm above these levels, resulting in a market standoff. Seller resistance was supported by elevated collection costs in Europe and a stronger euro, which raised breakeven levels and limited room for price reductions.

Price assessments

• US-origin bulk HMS 80:20: $403/t CFR Turkiye, up by $2/t w-o-w
  
  
• US East Coast HMS 80:20: $374/t FOB, up $2/t w-o-w
  
  

The scrap-to-rebar spread widened to around $196-198/t, with rebar export offers at $598-600/t FOB. Meanwhile, only one deal was concluded from Europe at around $397/t CFR.

Market comments

Market activity remained slow at the start of the week; however, overall sentiment points to firmer offers in the upcoming days, with US-origin scrap offers heard rising above $400-405/t.

As per a Baltic origin supplier source, uncertainty persists regarding mill response to these higher levels, as buyers remain cautious. Attention is now shifting to the Wire & Tube industry event, where increased market interactions and negotiations are expected.

While some deals may emerge during the event, participants are largely waiting for clearer signals, particularly for end-May shipment bookings. Most mills are already covered for April shipments, and the focus has now shifted toward securing cargoes for the second half of May, the source added.

A Turkiye-based buyer highlighted: "A continued wait-and-see approach, with mills assessing finished steel demand before committing to fresh purchases". A trader noted that mills are attempting to secure cargoes at $400/t CFR, but sellers are resisting, leading to limited deal activity."

A mill source mentioned that while some mills remain covered for near-term requirements, others are still evaluating May shipment needs but are not rushing into bookings due to weak downstream demand.

Another market participant said, "Limited scrap availability in the US and EU further restricted downward price movement. Some sellers were only willing to conclude deals near $397/t CFR under pressure, but such transactions remained rare."

In the downstream market, Turkish rebar prices edged lower to around $595-600/t FOB as compared to $605-610/t last week, reflecting weak demand in both domestic and export markets. Mills continued to face challenges in securing orders, which further dampened scrap buying interest.

Outlook

Turkish scrap market sentiment is expected to remain cautious in the coming days, with limited supply supporting prices, while weak finished steel demand and comfortable mill inventories are likely to cap any significant upside.