Turkiye: Imported ferrous scrap offers drop by $5/t w-o-w on thin trading amidst unclear price direction

Imported ferrous scrap prices in Turkiye experienced a decline during the week, primarily influenced by a lack of clear price direction and ample inventories, which eased the immediate need for re-stocking. The slow pace of Turkish rebar sales further contributed to the cautious sentiment, discouraging additional scrap imports.

BigMint's weekly assessment of bulk US HMS (80:20) scrap was reported at $417/t CFR Iskenderun, reflecting a $5/t decrease compared to the previous week's $422/t CFR.

Sell-side sources revealed that some buyers, recognising the downward price trend and facing urgent needs, closed a few deals. However, overall market reinforcement is not expected until there is a clear direction in prices. Certain major European suppliers may be open to selling at $410/t CFR levels, but others may be less inclined to follow suit. The lack of price clarity is causing hesitation among buyers to initiate new bookings. Additionally, the high collection costs in Europe make it challenging to accept lower bids from Turkish buyers, with the collection cost for new material standing at approximately EUR 335-340/t ($365-370/t) delivered to the docks.

On the buy side, purchasers maintained a cautious stance due to the unclear price trend and higher offers from sellers. US sellers reportedly set a minimum target of $420/t CFR and above for HMS (80:20), while tradable values were indicated at $415-420/t CFR. Despite bearish sentiments from buyers, sellers were reluctant to provide discounts, citing higher collection costs.

Recent deals

• An EU-origin deal was heard to have been concluded by an Iskenderun mill, with 22,000 t of HMS (80:20) at $410/t CFR and 13,000 t of shredded and bonus scrap, at $435/t CFR and $430/t CFR, respectively.
  
  
• A US-origin deal was booked by the same Iskenderun mill, with 30,000 t of HMS (95:5), 10,000 t of shredded and 10,000 t of PNS at an average price of $435/t CFR.
  
  
• A UK-origin deal of 22,000/t heavy melting scrap (80:20) was booked by a Marmara mill at $412/t CFR, for shipment in the second half of February.
  
  
• A deal of HMS (80:20) scraps from Venezuela has been booked by a Marmara mill at $413-$414/t CFR for March loading.
  
  
• A US origin cargo was booked by West Marmara mill consisting of 25,000 t HMS (95:5) at $430/t and 25,000 t shredded at $442/t CFR.
  
  
• A US-origin cargo was procured by a West Black sea-based mill comprising 50,000 t mixed scrap at an average price of $440/t CFR Turkiye.
  
  
• A short-sea deal from France included 5,000 t of HMS (85:15), booked by a Mediterranean region mill.
  
  

Rebar market: Turkish rebar sales continued to exhibit a sluggish pace, leading to reduced scrap consumption in the sector. Domestic rebar transactions were reported to be finalised at $630-640/t exw in the Iskenderun region, and in Izmir, they ranged from $620-630/t exw.

Regarding exports, offers were in the vicinity of $620/t FOB, although some deals were successfully concluded at $615/t FOB. The spread between scrap and rebar was assessed at $195-200/t FOB.

Outlook

Import offers are expected to experience volatility as buyers actively seek more discounted offers, while sellers maintain a firm stance due to higher collection costs.