Ahead of the Christmas holiday, short-term demand in the scrap market remains weak, while Turkish mills’ year-end purchasing requirements are limiting downside price potential. Although mills tested lower price levels throughout the week, concluded transactions showed that the floor around $365/t CFR continues to hold. Additional purchases made during the week at $369.5/t CFR indicate that, due to tight cargo availability and exporters’ firm stances, prices for January shipments are stabilizing close to the $370/t CFR level.
As European and US markets move into holiday mode, trading activity has declined noticeably. As noted by a European scrap seller, “finished steel demand is weak and scrap surplus is being discussed across many regions, making it difficult to identify a clear short-term direction.” In the UK market, activity has been extremely limited due to the holiday period, and the emergence of a new price direction is largely expected to be deferred until January.
Despite weak short-term demand and narrowing mill margins, tight cargo supply and a firm cost base continue to support scrap prices within the $365–370/t CFR range. Even with fewer trading days ahead of the holiday, Turkish mills’ outstanding purchasing requirements are making it difficult for prices to move sustainably toward the lower end of the range.
According to the latest scrap deals:
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HMS 75:25 scrap from the UK to the Marmara region was concluded at $356/t CFR Türkiye,
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HMS 80:20 scrap from the Baltic region to the Marmara region at $367/t CFR Türkiye,
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HMS 80:20 scrap from Germany to the Aegean region at $361.5/t CFR Türkiye,
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HMS 85:15 from the US to the Aegean region at $369.5/t CFR Türkiye, while shredded and bonus scrap were traded at $389.5/t CFR Türkiye.
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