The cost of deep-sea imports of ferrous scrap in Turkey moved up around $3/tonne week-on-week, lifted from a new US deal and strong local mill demand. About 5-6 cargoes traded in the $345-$356/t CFR range. Bulk HMS 80:20 from the US traded for $354/t CFR. The limit of Europe's supply and approximately $45/t freight charge to Turkey from the US reduced availability and supported strong offers. On the other hand, the Turkish scrap-to-rebar spread continued to remain stable on the week at $190-195/t, while rebar offers were seen in the range of $540-545/t FOB, showing that margins for the mills were balanced despite a lack of finished steel exports.

Outlook
Limited deep-sea supply, steady freight rates, and improved domestic rebar demand are expected to maintain support for Turkish scrap import prices in the near term. There could still be a limit on the upside if rebar demand slows or European scrap export availability improves. Market participants believe that suppliers will act cautiously when selling, as they contemplate higher prices coming on the horizon from strong rebar demand in regions such as Egypt and Europe.