Turkish scrap imports have picked up slightly this week at higher prices, but rebar export demand remained subdued as mills’ offers were considerably above buyers’ price expectations, market participants tell Kallanish.

Around nine scrap bookings for HMS 1&2 80:20 have been reported throughout the week at $230/tonne cfr Turkey or above, with the highest transaction price heard at $233.5. This is an increase of $5-10/t on last week. However, this still represents a fairly low level of scrap buying activity, and – with China-origin bookings having ceased in the last fortnight – suggests mills have sufficient feedstock.

Turkish producers’ representatives are expected next week in United Arab Emirates for negotiations for September shipment. Although official quotes to Dubai are at $410-420/t cfr theoretical weight after the scrap hike, Dubai-based buyers consider $400-405/t cfr a possible booking price range as long as scrap doesn’t increase further.

“The market has picked up after Ramadan, but there’s lots of stock so no one is in a rush to buy,” says a Dubai-based trader. Four vessels carrying 181,000t of rebar arrived in UAE from Turkey in July, while another four carrying 178,000t are due in August. “Transactions will happen at $405/t cfr,” the trader continues. If they do, Emirates Steel will have to reduce further its rebar price for September, as there are suggestions it has struggled to obtain August delivery orders despite last week slashing by $40/t.

China-origin billet bookings, meanwhile, have dried up over price uncertainty since Chinese mills hiked offers two weeks ago. The latest offers were heard above $320/t cfr Turkey, making scrap prices more competitive.

Turkish rebar offers have risen to $410/t fob after the scrap hike, but availability is still reported at $400. A Turkish trader says buyers in East Africa, however, are unlikely to agree to anything above $400-402/t. A second trader suggests this could see UAE-bound bookings concluded below $400/t fob next week as they usually occur at $10/t less than East Africa sales.

Turkey’s local rebar market, meanwhile, is said by a mill source to be “very slow” owing to uncertainty over Turkish military operations against the PKK and ISIS, as well as expectations of an impending snap general election. This could also force export transaction prices lower.