Turkey’s scrap import market has fallen silent this week, with not a single deal reported. Turkish mills are holding out for lower prices in order to reduce rebar offers with the aim of stimulating demand, market participants tell Kallanish.

Since the last scrap deals were concluded last week at $374-376/tonne cfr Turkey, Turkish mills have reduced their bids by over $20/t. “There are a lot of low-ball bids from the Turks in the low $350s, which face resistance from prime suppliers,” a European scrap merchant says. Winter conditions have reportedly restricted scrap availability however, making suppliers reluctant to accept lower prices.

It seems the scrap price reduction will have to come, though, with demand for rebar at current prices said to be thin in both Turkey’s domestic and export markets. Turkish mills’ rebar offers are at $565-570/t fob Turkey actual weight. Moreover, downward pressure on prices is coming from the return of Chinese billet offers to export markets following the drop in Chinese steel prices since the turn of the year.

One Turkish trader did nevertheless hear two Turkish mills selling rebar cargoes, one of 20,000 tonnes, the other of 10,000t, to the UK at around $565/t fob this week. However, this could not be verified before deadline.

One Ukrainian mill was heard dropping its billet offer to $505/t fob Black Sea due to a lack of demand. Turkish buyers will not purchase billet unless demand for finished product exports improves, while Algerian buyers are said to be holding out for lower prices. In Egypt, meanwhile, one rolling mill source says there are large billet stocks bought earlier at lower prices sitting at Egyptian ports.

A Turkish trader sums up the situation: “Billet is available from China, from India – there is availability. But then there are no rebar sales – that’s why there’s no scrap buying. That means it’s a weak market.” Scrap will have to be bought sooner or later, but at what price? This is the question on everyone’s lips.