With an older deal done last week, Turkey’s import scrap prices have hit the threshold of $380/mt CFR on the lower end. As the new week starts, Turkish market remains silent for now, though it normally opens mid-week after Turkish mills evaluate the situation in early days of the week. There is still some pressure on deep sea scrap prices as Turkish mills remain reluctant to conclude deals, they are expected to test the market with lower than today’s price levels.
SteelOrbis has learned that an ex-Netherlands cargo was sold to an Iskenderun-based producer for HMS I/II 80:20 scrap at $380/mt CFR late last week. An ex-France cargo was also sold late last week to an Izmir-based producer for HMS I/II 80:20 scrap at $383/mt CFR. SteelOrbis’ reference prices for ex-UK/EU have been revised to $380-383/mt CFR, dropping by another $0.5/mt CFR.
Further deals from the US side are expected to be signed this week, market sources report as they believe it is time for some producers to make inquiries about this grade. Multiple choices from the US have been voiced as available cargoes since early last week. Turkish mills are still not receiving sustainable demand from the steel market. Especially, the southern region of Turkey, which was hit by a major earthquake creating destruction in eleven cities on February 6, 2023, had supported the rebar demand in Turkey for years. The rebuilding of the damaged cities is almost completed, sources from the region report. Therefore, that support is not there anymore. The economical conditions in Turkey are also challenging for investors, negatively impacting the construction segment this year. On the flats side, EU’s new quotas are awaited to see a clearer picture, lower quota for Turkish flats may mean another obstacle for the Turkish mills’ exports and an ensuant down pressure on deep sea scrap prices.
A Germany-based subcollector today mentioned that some more exporters have reduced their collection prices to €280/mt DAP. Collection in the EU export yards are still in the range of €280-285/mt DAP in general. “This level is very low, and we are not in rush to sell as Europe is getting ready for the summer holidays. We do not expect much trade to be done during summer holidays as European mills will also take a break. Around September, we expect prices to start recovering though,” a Germany-based sub-collector said today, June 22. A Belgium-based exporter stated that they are also failing to collect scrap with their bids being at €280/mt DAP.
When 2026 started, deep sea HMS I/II 80:20 scrap prices of Turkey were at $358-370/mt CFR on average, remaining in a relatively stable range until early March. Prices started to move up in March, first at $394/mt CFR on average then the peak was met at $410.5/mt CFR. The reason behind the increases were the US-Israel-Iran war which raised the scrap collection costs as well as international sea freight rates moved up, exacerbated by the uncertainty surrounding future oil prices, vessel availability, and risks on some sea routes. The indirect impact of the war caused deep sea scrap prices to move up further without seeing any improvement in underlying steel demand. At the end of May, deep sea scrap prices started to correct, gradually decreasing to today’s $384.5/mt CFR on average.
