Two weeks ago, US East Coast scrap export yards said they were a little bit confused over their ability to obtain higher prices from Turkish mills; they weren't banking on the idea that the trend would stay its course.
Prices firmed slightly after out last report, with ex-US cargos for HMS I/II 80:20 scrap firming from $281/mt CFR to $289/mt CFR before they started to slip back down. Turkish producers, who had long lamented over less-than-ideal demand levels for finished steel products, had done well in the first part of the year in pressuring scrap yards to sell at lower prices; now that that finished steel sales prices, and demand, have started to inch upward (albeit slightly) scrap dealers have started to push back.
The big question moving forward is how long current price levels will stick. Ex-US cargo prices for HMS I/II 80:20 scrap have ticked down a notch from their recent high point, with the most recent cargos having been transacted at $285-$287/mt CFR.
It should also be noted that the approach of the Ramadan holiday is expected to quiet market transactions in the upcoming weeks. Although some Turkish producers are expected to transact some deals before that, US scrap yards say they are hopeful to maintain current price points during their next round of sales. In terms of the US domestic market, scrap prices in Chicago, Pittsburgh/Cleveland and Philadelphia have trended mostly stable, prices in the US are not yet firm enough to present an advantage to exporters in trying to sell to US-based steel producers.