Turkiye: Deepsea scrap prices remain stable w-o-w amid tight mill margins

• Sellers keep offers firm amid collection constraints, firm freights
  
  
• Stalemate emerges as mills weigh margins, trade remains muted
  
  

Turkish deep-sea imported scrap prices remained stable on 26 February, as limited deal activity kept the market in balance. HMS 80:20 was assessed at $375/t CFR, unchanged w-o-w. Market sentiment was mixed, with buyers and sellers locked in a pricing stalemate. While collection constraints and firm freights pushed sellers to maintain offers, tight rebar margins led to pushback from mills.

Price assessments

• US-origin bulk HMS 80:20: $375/t CFR Turkiye, stable w-o-w.
  
  
• US East Coast HMS 80:20: $346/t FOB, up by $1/t w-o-w.
  
  

The scrap-to-rebar spread remained at $179-180/t, with rebar export offers at $555/t FOB.

Market commentary

Market activity remained muted this week, impacted by the Ramadan slowdown and subdued sentiment in the finished steel segment. No major transactions were heard, as most mills stayed on the sidelines and monitored price movements.

The latest deals were heard at $374-375/t CFR for US-origin HMS and $370-372/t CFR for Baltic-origin material. US suppliers continued to indicate offers close to $380/t CFR; however, workable levels were lower at around $375-376/t for US HMS and $372-373/t for EU/Baltic cargoes.

Sellers showed limited flexibility on pricing, supported by tighter scrap availability in the US and Europe amid severe winter conditions. At the same time, firm Atlantic freights added to exporters' costs, restricting the scope for aggressive price reductions.

While some market participants expect fresh buying interest to surface, most believe transactions at higher US offers remain unlikely. The next confirmed deals are expected to provide clearer direction for near-term price trends.

Domestic steel market sentiments

Turkish mills continued to face tight margins in the downstream rebar segment amid weak domestic construction demand and limited export enquiries. Turkish rebar exports were at $555/t FOB, unchanged d-o-d. The narrow scrap-to-rebar spread kept mills cautious, limiting their willingness to accept higher scrap offers.

Outlook

Turkish deep-sea scrap prices are likely to remain stable in the short term. While constrained collection rates and firm freight costs support seller expectations, weak finished steel demand and cautious mill procurement may cap upside unless stronger booking activity emerges.