Turkiye: Imported bulk scrap prices remain stable even as weak rebar sales curb scrap bookings

• Mills cautious post-Eid, demand still sluggish
  
  
• Demand soft even after domestic mills cut rebar prices
  
  

Imported deep-sea ferrous scrap prices into Turkiye remained stable w-o-w at around $340/t CFR. However, Turkish mills continued to avoid major bookings due to sluggish finished steel sales.

The finished steel market has been slow in recent weeks, affected by the Eid holidays, the seasonal summer lull, and domestic economic pressures including high inflation and interest rates.

According to market participants, "Some sales may emerge later this week now that mills are returning from the holidays. However, prices above $340/t CFR would be unexpected, as key mills are placing counterbids closer to $330/t. The current workable range is estimated at $330-335/t CFR. The major hurdle for scrap suppliers remains weak rebar demand, which is keeping mills from booking fresh cargoes."

BigMint's price assessments

• US-origin HMS 80:20 bulk scrap stood at $340/t CFR Turkiye, stable w-o-w.
  
  
• Bulk HMS 80:20 from the US East Coast was at $317/t FOB, stable w-o-w.
  
  

The Turkish rebar-to-scrap spread stood at $200-210/t, with workable levels for Turkish rebars heard up to $545-550/t FOB.

Approximately, two deep-sea deals were concluded over the past week in the $336-340/t CFR range.

Market commentary

Offers for US/Baltic-origin HMS 80:20 were mostly in the $340-345/t CFR range, with tradable levels around $335-340/t CFR. Sellers from the EU/UK are offering at $335-338/t CFR, similar to US and Baltic cargoes. But Turkish mills are not buying at these levels due to weak finished steel demand. Mills may resume bookings if prices fall to around $325-330/t CFR.

According to a market participant, "Scrap suppliers from the EU and UK are likely to push offers up to $338-340/t CFR this week, capitalising on the reduced participation of US exporters. However, Turkish mills remain cautious and will resist higher prices amid weak demand for long steel products."

Domestic market

Kardemir reopened billet sales, offering 150x150mm billets at lower prices; $495/t exw for S235JR and $505/t exw for B420 grades, down by $5/t from the tender. However, buying interest was weak, and the company managed to sell only about 20,000 t, much less than the 60,000 t sold in its previous round.

The Turkish ferrous scrap market remained slow as mills struggled with weak rebar demand. Mills have reduced domestic rebar prices, but the move has failed to stimulate demand. Buyers are now focused on securing lower-priced scrap to maintain profitability.

Outlook

Sellers expect Turkish mills will need more cargoes for July shipments, which could lead to renewed interest in the near term. However, mills remain cautious, with weak rebar demand discouraging immediate bookings. Market participants are watching price trends closely, particularly if offers dip below the $330/t CFR mark.