In the Turkish imported scrap market, rising freight costs and cautious buying limit activity

At the beginning of the week, expectations were that prices in Türkiye’s imported scrap market could move upward and test the $380/t level, but global developments during the week changed the market dynamics. Rapidly escalating geopolitical tensions in the Middle East caused fluctuations in energy and transportation costs, directly affecting scrap trade, particularly through higher sea freight. One of the supply regions most affected by rising freight costs was the US East Coast. The increase in shipping rates along the Türkiye route led US exporters to revise their offers upward. While it is reported that US sellers are targeting $380/t and above for scrap, these levels are not considered competitive for Turkish producers at this stage. Market participants also note that, due to higher freight, US suppliers have been participating in the market more selectively in recent days.

In this environment, Turkish steel producers have increasingly turned to Europe and the Baltic region for their purchases. In Europe, the impact of freight increases is relatively limited, and the weakness of the euro partially eases cost pressures. More competitive European offers, which had started circulating last week, have become more noticeable this week. At the same time, it is reported that Turkish steel producers have secured only a limited portion of their April shipment scrap needs, and purchases are proceeding cautiously. Although the month is reaching its midpoint, many mills have not yet made aggressive buys, keeping market activity low.

Meanwhile, developments on the export side also indicate that supply is tight. Exporters are reportedly making efforts to gather sufficient material for March shipments, and in some cases, shipment dates are being postponed as far as possible. Market participants see this as a clear sign that domestic scrap supply is quite limited.

Although there have been modest increases in domestic and export finished steel prices in Türkiye, these rises have not been strong enough to stimulate significant scrap buying. In addition, the approaching holiday period is contributing to seasonal slowdowns, reinforcing the cautious market sentiment.