Weak demand for Turkish finished steel combined with political uncertainty within that region has resulted in lower demand for US import scrap. Two weeks ago, ex-US cargos for HMS I/II 80:20 scrap were concluded at $230/mt CFR; since that time, subsequent bookings have declined steadily, with cargos being transacted first at $220/mt CFR, then $215/mt CFR, with the most recent cargo for 20,000 mt of HMS I/II 80:20 scrap concluded at $205/mt CFR.
Scrap prices in the US East coast/Philadelphia region trended soft this month, with transaction ranges for most grades settling down approximately $15/mt. Demand for scrap in the immediate surrounding regions has been weak, according to sources, who say mills have been reluctant to buy due to healthy finished steel inventories throughout the US. Prices in the Ohio Valley and the South are also weak, which, in most cases, would have export yards selling at lateral price points should they choose to pay freight costs to ship scrap loads to domestic mills. Sources close to SteelOrbis say that due to weak demand in the US market, combined with weakened demand from Turkish producers, there is concern that scrap prices could soften more before the market sees any upswing.