In mid-October, Turkish mills bought ex-
US cargos of HMS I/II (80:20) and shredded
scrap at $334/mt CFR, and $339/mt CFR, respectively. This week, however, it’s been rumored that a Turkish steelmaker concluded an ex-
US deal for a cargo of HMS I/II (80:20) at $302/mt CFR. Turkish mills also concluded a similar booking out of the Baltic region, which indicated a $15-$20/mt CFR drop from prices seen just seven days ago.
Some believe the rapid erosion in
US export
scrap prices is tied to a decline in demand for ex-
Turkey finished steel products. Aggressively-priced Chinese rebar offers are placing downward pricing pressure on Turkish rebar prices, and profit margins are being squeezed to “uncomfortable” levels, thus leaving mills unwilling to pay higher prices for
scrap.
Looking at the
US domestic market,
scrap prices have trended down between $20-$30/lt across the board for November buys, which would make it cost prohibitive for export yards to ship
scrap inland. “In order for that to happen, the export market would need to come down another $20/mt CFR and the domestic market would need to stay sideways,” according to one Midwest-based source