Turkish rebar exports have fallen silent this week, with October shipment talks with United Arab Emirates traders expected to begin only next week. No deep-sea scrap import bookings have been heard, as mills continued to prefer sourcing China-origin billet instead, despite its longer delivery time, market participants tell Kallanish.

The last scrap deal heard for HMS 1&2 80:20 was a Russia-origin cargo at the end of last week for $233/tonne cfr Turkey. This was down from the previous $238/t cfr Turkey deals which were for prompt shipment from the US.

In any case Turkish mills are currently more interested in billet, which is offered from China at $290-300/t cfr. “It makes much more sense to take billet over scrap,” explains a Turkish trader. “Billet at $290-300 plus conversion cost gives you rebar at around $340, while scrap at $240 means higher rebar cost.”

Following a reported 50,000t booking last week of China-origin billet by one Turkish mill at $305/t cfr Turkey, another 70,000t was heard booked this week by a second mill at $296/t cfr. However, the mill could not be contacted for confirmation.

Rebar, although quoted by Turkish mills at $385-395/t fob, is likely to see deals at lower prices next week. “Turkish mills are saying they have to sell,” says a Dubai-based trader. “Emirates Steel's price is equivalent to $385/t cfr Dubai [theoretical weight] from Turkey, so I think the Turks will come down to $375/t cfr.” This would equate to around $365/t fob Turkey actual weight.

An Egyptian trader says Iskenderun mills are offering to Egypt at $395/t fob Turkey, but thinks they could come down to $370 “…because their local market is weak”, he says. “The second half of September is the Eid holiday and markets will be at a standstill, so mills will be hungry to sell now.” Importers in Egypt are still grappling with foreign currency shortages, however, he adds, so any booked tonnages will be small.