Posted on 31 Jul 2025
Turkish mills are beginning to increase their domestic scrap purchase prices this week, a widely anticipated move following continued lira depreciation since the last round of price hikes.
Mills are prioritising local scrap procurement to secure cost-effective supply amid limited availability, as imported scrap purchases remain largely on hold. However, domestic supply continues to fall short of mill requirements, leaving reliance on imports in place.
No new deep-sea scrap deals are reported this week. Suppliers are in no rush to sell, with a US supplier reportedly targeting $350/tonne cfr for HMS 1&2 80:20. In contrast, Turkish mills have reduced their price targets for European scrap to below $340/t cfr, in line with the weakening euro, which slipped to $1.152 on Wednesday from $1.173 a week earlier.
The increase in pig iron offers from the CIS at $330/t cfr is seen pressuring scrap prices.
Turkish mills had expected Asian billet prices to soften following Monday’s downturn, but a rebound in the Chinese market on Tuesday pushed prices up instead. Chinese billet offers were heard at $495-500/t cfr on Wednesday, making them even less competitive compared with scrap, particularly in terms of pricing and shipment times.
However, Chinese futures weakened again on Wednesday after the long-awaited Politburo meeting failed to meet market expectations. News of the US-China 90-day tariff truce extension failed to lift sentiment.
In Türkiye’s domestic market, rebar demand remains lacklustre, yet most mills held firm with ex-works offers at $545-560/t on Wednesday. This stance is driven by high scrap costs and concerns over a potential electricity price hike from August.
Turkish shipbreaking scrap stand mostly at $320-335/t delivered.
The lira was pegged at TRY 40.59/dollar by Wednesday’s close of business.
Source:Kallanish
