Turkish scrap has unexpectedly rebounded this week on the booking of at least two fresh deep-sea deals, while three sizeable Turkish rebar cargoes were heard concluded to Southeast Asia, market participants tell Kallanish.

The first scrap cargo was from Europe for 17,500 tonnes of HMS 1&2 75:25 and 7,500t bonus at an average of $308/tonne cfr Turkey, equating to $305-306/t for HMS 80:20. The second, US-origin consignment was for 18,000t of HMS 80:20 at $312.5/t, 10,000t shredded at $317.5/t and 2,000t bonus at $322.5/t. This compares to last week’s US-origin deal with 80:20 priced at $306/t.

The rebound has taken many by surprise as, following last week’s substantial price drop, scrap had been expected by some to fall below $300/t, with others forecasting sideways movement. One European scrap agent says of the latest uptick: “Sales of finished steel must be developing but I can’t see how or why.” A European scrap merchant says the market is rebounding “…a little bit, (but) no miracles, I presume.”

Another European scrap merchant says he has turned down bids from two Turkish mills at $312/t for 80:20 following the latest US deal.

A few scrap suppliers did say last week that prices are unlikely to reach $300/t because collection costs remain high. A Turkish steel trader, however, suggests the reason for this week’s uptick is Egypt’s decision to impose a billet safeguard duty this week. This has resulted in increased scrap demand from Egyptian steelmakers, thereby putting upward pressure on scrap prices. However, this is likely to be only temporary, he adds.

A Turkish scrap agent says he now expects prices to move sideways in the $310-320/t range. “Buyers (Turkish mills) will come back to the market in the next few days because they need material for end-May and June shipment,” he observes. “They will take positions.”

On the rebar front, Southeast Asia returned in force to purchasing from Turkey, helping boost scrap demand and prop up prices. One Turkish mill was heard selling a 50,000t rebar cargo to Hong Kong at $480/t fob Turkey, following its sale of the same tonnage to Singapore last week at $478/t fob (see separate article). A second mill was heard selling a 20,000-50,000t rebar cargo to Singapore at $475-477/t fob.