Posted on 04 Sep 2025
Although the lira has continued to depreciate against the dollar, most Turkish mills have maintained their domestic scrap purchase prices, with only a single mill opting for increases since last week, Kallanish notes.
Domestic scrap demand remains modest.
In the imported scrap segment, business is getting more complicated as Turkish mills push for lower prices.
Suppliers, pressured by rising freight costs, have no choice but to reduce dock prices, as their target levels continue to meet resistance in the Turkish market. Demand in alternative markets is also lacking. Consequently, Benelux exporters have lowered dock prices further into mid-week to €245-250/tonne delivered.
Meanwhile, Turkish mills’ price targets for European scrap remain in the low $330s cfr, while exporters’ breakeven levels are at above $335/t cfr, with dock values at €250/t.
The euro, meanwhile, weakened to $1.164 on Wednesday, lending some support to Turkish mills’ price targets.
In the US market, busheling is under pressure, as expected, with some domestic mills bidding at $20-30/gross ton lower than last month. Shredded scrap is also seeing $10/gt declines in certain regions. Exporters, facing resistance in overseas markets and US East Coast-Türkiye freight costs of around $41/t, are likewise expected to cut dock prices. Turkish mills are seen seeking below $340/t cfr for US-origin HMS 1&2 80:20.
A supplier tells Kallanish: “The market has not yet shown the expected September recovery. I believe this will only materialise in the second half of the month, following interest rate cuts by the Fed and the Turkish Central Bank. However, conditions in Türkiye are becoming complicated again amid mounting political turbulence caused by the government’s pressure on the opposition party. This further weakens sentiment and could hamper the anticipated inventory replenishment and rate cut."
Against this backdrop of unfavourable conditions, poor steel sales and weakening steel prices, Turkish mills are in no rush to secure scrap. Although some mills inquired about scrap on Wednesday, actual buying interest was poor.
Most market participants now see further softening as inevitable in the Turkish scrap market, given weaker signs of recovery.
In Türkiye’s domestic rebar market, demand remained almost dead on Wednesday, with offers at $528-545/t ex-works, depending on the region and payment deadline.
Turkish shipbreaking scrap stands mostly at $320-335/t delivered.
The lira was pegged at TRY 41.17/dollar by Wednesday business close.
Source:Kallanish
