US export scrap yards have been pushing to raise prices to Turkey for HMS I/II 80:20 scrap between $5-$10/mt CFR from previous bookings when cargos were concluded in the approximate range of $244/mt CFR. This week, sources close to SteelOrbis have confirmed that one ex-US deal for 25,000 mt of HMS I/II 80:20 scrap was concluded at approximately $258/mt CFR. Although this is certainly good news for exporters in the immediate sense, many question how long the uptrend will last.
“Demand for Turkish finished steel products remains weak,” according to one East coast-based source, who cites concerns that the “spring thaw” will cause a mass inflow of scrap into the yards, which could place downward pricing pressure on the market if supply outpaces demand. Prices for Chinese iron ore are also at their lowest level in the past six years, which is also expected to have a negative impact on US export scrap prices. Thus, the recent gains may only be temporary, and in the absence of mitigating circumstances, the market could see additional softening in the upcoming weeks.