According to sources close to SteelOrbis, the recent ex-US import scrap purchase by Turkey at $278/mt CFR average price for HMS I/II 80:20 and bonus sparked concerns in the East coast market of whether additional purchases will be made at lower prices. Although sources note that given the strong US domestic market and the relatively stable UK and Baltic scrap pricing, US scrap exporters are not expected to provide Turkey with drastic discounts prior to the US domestic June buy cycle.
In the East coast, Pennsylvania, Midwest, Ohio and Central regions, sources inform SteelOrbis that expectations are soft-sideways compared to May settled prices. A source stated, “Business at flat roll, SBQ and pipe mills continues to be very strong and it’s expected to remain through the summer,” despite seasonal slowdowns.
Throughout the various regions, “scrap availability and demand seem to be in balance” according to a separate source. Additionally, given the large spread between busheling and shredded, mills with flexible mixes are reportedly substituting shredder and P&S for busheling. This mix change is expected to provide support for the cut and shredded grades.
Another concern is the further tight supply of industry busheling sources for mills that demand prime grade scrap given slower automotive industry sales that may prolong the usual planned maintenance summer outages.
Several sources note that in the Southern region prices may trend strong sideways and possibly up as “the scrap market could be priced stronger” given the demand.