Two weeks ago, Turkish mills had taken a slow step away from ex-US scrap bookings in hopes of getting better prices; today, it would seem the strategy has worked. Recent ex-US cargos of HSM I/II were booked at approximately $370/mt CFR, reflecting a drop of about $15/mt CFR from levels seen in the first part of the month. Shredded scrap cargos have also ticked down by about $15/mt CFR during that same timeframe; the most recent ex-US booking for that grade of scrap transacted at $375/mt CFR.
“Inventories in the export yards seem to be running a bit on the slim side,” according to one East-coast based source. “The exporters seem to have sold a fair amount of their scrap at the higher prices so their yards aren’t exactly overflowing at this point, which makes them a bit more open to selling at lower price points.” Other market conditions also seem to support some additional price softening in the days ahead. Current rumblings in the US domestic market indicate prices are likely to tick slightly downward when mills make their October buys, and since the appearance of Chinese billet in the Turkish market has led to downward pricing pressure when it comes to scrap prices, US exporters may need to show continued flexibility in order to gain orders.