Turkiye: Imported bulk scrap prices drop by $3/t w-o-w; buyers silent during holiday period

• US suppliers hold firm while mills push for lower prices
  
  
• Price rebound anticipated amid limited rise after holidays
  
  

Turkish deep-sea imported ferrous scrap prices trended slightly downward as mills pushed for lower rates amid weak restocking demand. Sellers, however, remained firm in their offers, showing little urgency during the holiday period.

Market activity was subdued, with limited transactions reflecting cautious buying from mills and steady resistance from suppliers, according to market sources.

Market insiders expect scrap collection and bookings to resume after 6 January, following the holiday period.

BigMint's assessments

• US-origin HMS (80:20) bulk scrap stood at $346/t CFR Turkiye, down $3/t w-o-w.
  
  
• Bulk HMS (80:20) from the US East Coast was at $320/t FOB, down by $3/t w-o-w.
  
  

The scrap-to-rebar spread remained rangebound w-o-w at $226-230/t, as rebar export prices stood at $575-580/t FOB.

Market scenario

"US East Coast exporters widely agree that recyclers find it challenging to sustain operations below $350/t CFR," stated a US-based recycler. He noted that current offers for US-origin HMS (80:20) are in the $350-$355/t CFR range.

A Turkish mill source anticipates Baltic-origin HMS (80:20) deals to dip below $345/t CFR amid better demand at these levels.

US suppliers are trying to hold firm, but mills are pushing for lower prices--though market activity remains exceptionally quiet during the holiday season, multiple sources observed.

A trader source mentioned that sluggish market activity is due to the year-end holiday period, which subdued domestic demand for finished steel.

An EU recycler observed, "There is no buying activity at the docks, making it challenging to gauge viable pricing."

An agent source noted that only one Turkish mill has been actively purchasing last week leading up to 27 December, while others remained largely inactive.

Outlook

Market insiders anticipate that mills with remaining bookings for January will likely source material from the short-sea region, but a firm price rise is not expected immediately after the holiday period.

A Turkish mill representative commented,"Imported scrap prices are expected to continue declining, with no mill willing to pay more than $345/t CFR."

Meanwhile, an indentor expressed cautious optimism, anticipating a slight price recovery in the coming days.