Turkish scrap import prices have rebounded rapidly this week following a flurry of at least eight deep-sea bookings. Turkish rebar export interest remains subdued, but domestic demand has continued to provide respite, market participants tell Kallanish.

At least three of the bookings heard this week were from North America. The latest was for 11,000 tonnes of HMS 1&2 80:20 at $314/tonne cfr Turkey, 12,000t shredded at $319/t and 2,000t bonus at $324/t. The previous cargo contained the same composition and prices, while the third was for 30,000t shredded, 15,000t HMS 90/10 and 5,000t P&S scrap at an average of $320/t, giving an indicative price for 80:20 also of around $314/t. This is up $11/t on-week.

The remaining cargoes this week comprised two bookings each from the UK and Baltic, and one from the Benelux.

Turkish rebar quotes have recovered at the lower end of the range to $515-525/t fob Turkey this week, in contrast to some expectations last week that $505/t would be made available by mills. Export demand has not improved, with buyers said to be seeking below $510/t fob, but continued strong domestic demand means mills are currently in no hurry to export. Domestic rebar prices have been hiked to $530-540/t ex-works.

The situation has a trader perplexed. “It’s not easy to understand why the local market can be so good at the end of November amid bad economic conditions,” he exclaims, pointing to the weak lira. Another trader says tight product availability is behind the increased local rebar prices.

While scrap prices are on the up again, CIS billet quotes remain languishing at around $460/t fob Black Sea following their progressive descent since the start of October, but export demand is weak. Bids, coming at present mainly from Turkey, are at around $10/t below offers. “Let’s see if this scrap uptick has an effect,” says an international billet trader.

It is difficult, however, to predict what the price of scrap will be at tomorrow, given its rapid yo-yoing so far in the fourth quarter. What has been consistent during this period is that it has remained bound within the $295-315/t cfr Turkey range. It remains to be seen whether it breaks through this during the latest uptick.