Turkish deep-sea bookings have resumed this week at considerably lower prices, as China-origin billet imports fell silent. Mills’ rebar offers have remained stable from last week at $385-390/tonne fob Turkey, although little business has taken place. Transactions are anticipated next week at lower prices, market participants tell Kallanish.

The HMS 1&2 80:20 cargo was heard booked by a Turkish mill from the US at $220/t cfr Turkey, down some $18/t on the previous US-origin cargo concluded a fortnight ago. The same mill heard booking China-origin billet last week at $296/t cfr Turkey, meanwhile, is now heard asking for $290/t cfr. CIS-origin billet offers are reported at $300/t fob Black Sea.

One Turkish trader suggests Chinese mills may attempt a billet price hike when they return from holiday next week, as some steelmaking capacity in China has been idled on environmental issues. However, a second trader says price hikes are unlikely to materialise given that iron ore prices have not significantly changed and overcapacity remains.

Buyers in United Arab Emirates are yet to begin talks with Turkish mills on October-shipment sales. Offers to UAE are at $385/t cfr Dubai theoretical weight, but bids next week are likely to be at or below $380/t cfr, a Dubai-based trader predicts, equating to around $370/t fob Turkey.

“Business could happen next week at $370/t fob, but this will be the bottom,” a Turkish mill source says. For smaller tonnages, deals are unlikely to go below $380/t fob he adds.

A small, 2,000-3,000t cargo was heard sold to Egypt this week at $390/t fob Turkey, a small positive given Egyptian traders’ problems in obtaining foreign currency and the bleak demand picture elsewhere. Demand from East Africa is reported very weak due to it being the rainy season there, while Israeli buyers are bidding at $370/t fob, but haven’t had this accepted.

In the local market, rebar sales were heard this week at $370/t ex-works, while demand is said to be slow due to uncertainty over the expected re-election on 1 November. “Even after the re-election the picture may not be so clear,” laments a trader. “The Turkish parliament might again be left without a majority. The market seems so dark.”