US export
scrap prices to Turkey have continued to firm since our last report two weeks ago, although since Turkish mills have not yet seen a previously anticipated uptick in rebar demand, some are starting to question how long the current transaction prices will hold. Last week, Turkish producers booked orders of HSM I/II
scrap around the $385/mt CFR level, reflecting an approximate $5/mt CFR increase from levels seen earlier this month. Shredded
scrap prices have also trended up by approximately $17/mt CFR in the past two weeks, with cargos sold between $390-$392/mt CFR. Meanwhile, P&S
scrap prices have also ticked up by about $7/mt CFR, with the most recent booking taking place at $397/mt CFR.
Sources close to SteelOrbis say that in the
US domestic market,
scrap inventories are relatively low and both
US East Coast domestic and export yards “need to get aggressive” with their pricing when they are buying from collectors. Sources have also confirmed that exporters, who have been short on shredded
scrap, have also needed to make buys from domestic shredders in order to keep up with demand. That being said, both
US domestic and export
scrap yards will try to push these increases onto their customers, although whether Turkish mills will be agreeable to paying higher levels through September has yet to be seen.