The sentiment within the US export scrap market has taken a bearish turn, as many East coast-based sources say they’re bracing for what could be a rough 60 days. The most recent cargo to Turkey is down between $5-$6/mt CFR from levels seen one week ago, at $320/mt CFR for 5,000 mt of HMS 80:20, 25,000 mt of shredded scrap and 12,000 mt of bonus grade scrap; this places current ex-US price points in line with recent cargos booked from other countries.
Turkish finished steel prices are still trending on the weak side, according to one East coast-based source. Falling billet and iron ore prices are expected to place continued downward pricing pressure on the Turkish import scrap market, compounding the situation. And while some US export yards say they may try to divert shipments inland, others point out that the US domestic scrap market is hardly robust. “Things could always change on a dime at any given moment,” according to US exporter, “but at this point we’re all hanging on and bracing for what we think is going to be a rough ride.”