Turkiye: Imported bulk scrap prices rebound from a 2-year low on strong outlook

• Turkish scrap prices rise on stronger steel demand
  
  
• Kardemir raises rebar price by TRY 500/t
  
  

Turkish imported ferrous scrap prices rose by $7/t w-o-w, rebounding after hitting a two-year low. This week, improved steel demand in both the domestic and export markets helped the price to rise.

At the start of the week, market activity was low. However, it picked up towards the weekend. Scrap prices rebounded due to the end of Syria's civil war, a recovery in Chinese steel markets, and the Moselle River accident, which impacted steel transportation in Europe. This also helped revive Turkiye's domestic rebar market this week.

Due to recent rebar sales, Turkish demand for restocking increased, and sellers upheld strong price expectations.

Assessments

• BigMint's assessment for US-origin HMS (80:20) bulk scrap stood at $345/t CFR, up by $7/t w-o-w.
  
  
• BigMint's assessment for bulk HMS (80:20) from the US east coast stood at $320/t FOB, up by $7/t w-o-w.
  
  

The scrap-to-rebar spread remains rangebound at $224-226/t as rebar export prices stood at $565-570/t FOB.

Market scenario

In the last seven days, four deals were heard from the EU and US at around $333-348/t on CFR Turkiye basis.

A Turkish trader said, "The Moselle River accident halted the downturn in scrap markets and stopped Turkish import prices from dropping further. This may have an impact on the scrap industry throughout Europe."

As per a Baltic recycler, "Mills cannot postpone scrap bookings any longer and must now return to the market."

Sources also speculate that mills might have been attempting to secure scrap in advance of the anticipated Central Economic Work Conference, hoping it would provide details on China's economic growth and stimulus plans, which could positively impact the global market.

Indicative tradable values for US/Baltic-origin material remain at $340-$343/t CFR, with seller offers at $345-348/t CFR and buyer bids ranging from $335-336/t CFR.

A major steel mill in the Iskenderun region increased its domestic rebar prices by TRY 500/t, bringing the overall price to TRY 24,500/t ($694/t) exw, including 20% VAT.

Meanwhile, Kardemir launched a rebar tender offering 12-32 mm rebar at TRY 23,820/t exw and sold at least 42,250 t before closing its sales.

Outlook: Following delayed January bookings, buyers are expected to actively engage in the market for next month's shipments. At least a dozen vessels are likely to be booked in the coming days, with prices anticipated to exceed $350/t CFR. Strong demand in both domestic and export rebar markets is expected to support the increase in scrap prices.