While cost bases in the imported scrap market remain at elevated levels, downside price potential appears to be quite limited. Winter conditions continue to pressure the supply side, keeping spot offers scarce and creating an artificial balance in the market. Ongoing tight scrap availability and mills’ inability to fully cover their March production requirements have led to a modest improvement in market sentiment.
However, weak end-user demand is significantly limiting scrap buying activity. Mills are staying cautious on new purchases as they see insufficient order inflows from both the domestic market and export channels. Finished steel prices remain under pressure and at levels that fail to cover costs, pushing producers into a defensive stance.
From a supply-demand perspective, consecutive winter storms and extreme cold weather across large parts of the eastern half of the country have severely disrupted scrap collection, processing, and transportation activities. This has materially reduced physical scrap availability, preventing a sharp price correction. Nevertheless, supply tightness alone is not sufficient to drive the market higher amid the lack of demand.
Meanwhile, unpredictable developments stemming from the Trump front in the US as well as Türkiye-related factors have further dampened risk appetite among market participants. Heightened uncertainty is forcing both buyers and sellers to act cautiously, keeping trading volumes limited.
Overall, while scrap supply continues to be the main driving force in the market, finished steel prices remain far from showing a demand-driven recovery. Current conditions point to an increasingly challenging environment for producers—particularly integrated mills and electric arc furnace operators—with the key determinant for market direction in the coming weeks being whether any improvement on the demand side materializes.
According to the latest reported import scrap deals:
From Europe to the Aegean region, HMS 80:20 was heard at $375/t CFR Türkiye, while bonus and shredded scrap were at $395/t CFR Türkiye.
From the US to the Aegean region, HMS 90:10 was reported at $378/t CFR Türkiye, with bonus scrap at $395/t CFR Türkiye.
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