Turkiye: Imported ferrous scrap price drop over $15/t w-o-w on soft seller sentiment, sluggish rebar sales

Imported ferrous scrap market negotiations in Turkiye started slow this week as mills hesitated on bookings amid sluggish rebar sales. Limited long steel sales prompted a halt in activity. Steel producers bid at $385-390/tonne (t) CFR for HMS (80:20), while exporters targeted higher offers of $405-410/t.

Turkish imported ferrous scrap prices dipped sharply mid-week amid negative sentiments in the overseas supplier market. The absence of Benelux (Belgium-the Netherlands-Luxembourg) suppliers in the negotiations also caused a drastic drop in prices from this region into Turkiye. For instance, Baltic and Benelux collection costs dropped to Euro 340-342/t ($368-370/t) and Euro 330-332/t ($357-359/t), respectively, down by Euro 10-12/t($11-13/t) from last week.

BigMint's assessment for US-origin HMS (80:20) bulk scrap stood at $395/t CFR, sharply dropping by $17/t from last week.

BigMint's assessment for HMS (80:20) bulk from the US East Coast stood at $371/t FOB, down by $16/t w-o-w, supported by weaker domestic sentiments in the US scrap market.

Turkish rebar export offers were heard at $600-604/t FOB, while short-sea prices softened as mills pressured sellers. Short-sea scrap imports were assessed at $380/t CFR. Buyers aim to lower prices, but limited scrap availability in Romania and Bulgaria may halt the downward trend soon.

The scrap-to-rebar spread widened to $200-205/t, considering that Turkish exported rebar was assessed at $600-604/t FOB Iskenderun.

A buyer source in Turkiye said: "There is now low demand. Docks need to sell and so are keeping prices low. On the other hand, mills are not finding price viability over 400/t. In short, prices are hovering at 375-380/t from Romania, Bulgaria, and Italy."

In the imported billet market, Russian suppliers occasionally offered to Turkiye, maintaining prices at around $545/t CIF Turkish Black Sea in recent sales. However, with Kardemir's price adjustment, bids may reach a maximum of $530-535/t CFR, depending on the port.

Recent deal: A bulk US cargo comprising 18,000 t of shredded and 12,000 t of bonus, was sold at an average price of $415/t CFR Turkiye for late March shipment. Short-sea deals for Bulgaria-origin HMS (80:20) were heard at $376/t CFR while Italy-origin HMS (85:15) was at $380/t CFR.

Domestic market: Turkish steelmakers, including major producer ICDAS, slashed rebar prices by $20/t due to sluggish domestic demand and lower imported scrap costs. Other mills also adjusted prices downward by $5/t, with offers ranging from $605-625/t exw across regions. Some Iskenderun-based companies said higher prices were deemed unfeasible by insiders.

In Turkiye, local billet prices experienced a downward trend after weeks of stability. Kardemir, a key steel producer, notably reduced its billet prices by a significant $15/t. Lower scrap prices and weak demand for finished steel also contributed to the decline. Overseas scrap suppliers adjusted their prices, but customer expectations remained unmet. Kardemir sold about 45,000-50,000 t of semis at $565/t exw. Other Turkish producers also lowered prices, with offers ranging from $585-590/t exw for March shipment.

Despite this, customers pushed for further discounts. Suppliers from the Iskenderun region initially resisted significant discounts but may revise their pricing strategy due to market conditions.

Outlook: According to market insiders, most offers from the US are below $400-402/t. If bookings become active in the first week of March, workable prices may potentially drop to $385-390/t CFR, driven by soft US scrap export prices.