Turkiye: Scrap prices rise on tight supply; weak rebar demand pressures mills' margins
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- Suppliers target up to $420/t CFR Turkiye
- Freight costs continue supporting higher offers
Turkish deep-sea scrap prices increased during the week ended 7 May, supported by limited supply of US-origin cargoes, firm freights, and stronger seller sentiment. Deals for Germany-origin HMS 80:20 were heard at $408/t CFR, while Denmark-origin cargoes were booked at $411/t CFR. Tradable levels for US-origin HMS 80:20 were reported at $413-416/t CFR.
Price assessments
- US-origin bulk HMS 80:20: $414/t CFR Turkiye, up $2/t w-o-w
- US East Coast HMS 80:20: $379/t FOB, down $1/t w-o-w
The scrap-to-rebar spread narrowed further to around $182-185/t, falling below the commonly referenced $200/t breakeven level. At the same time, Turkish rebar export prices declined slightly to $596-600/t FOB, adding pressure on mill margins.
Market comments
A Baltic supplier said, "Market sentiment remains firm, supported by tight scrap supply and elevated freight levels. However, mills are cautious with fresh bookings due to weak finished steel demand and squeezed margins. US suppliers are targeting up to $420/t CFR, backed by high freight and steady demand from other regions."
A Turkiye-based trader said, "Negotiations are ongoing, but most mills are delaying bookings amid slow domestic and export rebar demand."
Domestic market
Turkiye's domestic steel market remained weak, with slow demand in both local and export rebar segments. Export rebar prices declined slightly during the week, reducing mill margins further as higher scrap costs could not be fully passed on to buyers.
Outlook
Turkish import scrap prices are expected to remain firm in the upcoming days due to tight supply and high freight costs. However, weak rebar demand and pressure on mill margins are likely to limit aggressive buying and keep market sentiment cautious.
