Turkish scrap prices return to growth

HMS 1&2 (80:20) scrap price offers at the end of last week rose by 2.7% compared to the beginning of March, to $375/t, CNF Iskenderun, according to MetalPlace. The growth resumed after a pause in mid-February, when quotes were stable at $360/t. In general, since the beginning of the year, the cost of scrap in Turkish ports has risen by 11%.

Consumers note that the price increase does not reflect the situation. Most Turkish metallurgical plants do not plan to make purchases until April, a representative of one of the companies said in a commentary to Kallanish.

Market pessimism is explained by weak domestic demand for finished metal products. According to the Turkish Steel Association TCUD, steel production in January fell by 1.9% year-on-year to 3.2 million tons. At the same time, steel consumption increased by 2.6% to 3.6 million tons. The increase was due to imports, which soared by 25% to 1.73 million tons.

The rise in scrap prices in Turkish ports was also affected by its rise in the European Union. The EU is the second most important destination for scrap imports for Turkey, after the United States. Since January, European prices have risen from $310/t to $340/t FOB Rotterdam. During the first week of March, the increase was $5/t.

Competition for scrap with European steelmakers is forcing Turkish plants to pay more. However, real deals are concluded at a lower price than the proposed quotes, Kallanish says. According to him, a supplier from the Netherlands, who asked for $375/t CFR Turkey, sold HMS 1&2 (80:20) at $367/t CFR in early March.

Rising prices in Turkey make scrap exports more attractive for Ukrainian suppliers. In turn, this is fraught with tensions with supplies for Ukrainian metallurgical plants.

Recall that the export of ferrous scrap from Ukraine increased by 60.7% in 2024, to 293.2 thousand tons. Since 2022, the volume of foreign shipments has increased more than 5 times.