Turkish scrap import prices continued up this week. In the latest ex-US deals in Turkey HMS I/II 80:20 scrap price has reached to $230/mt CFR. Ex-Europe and ex-Baltic scrap prices have also increased giving the US pricing a boost. Additionally, a slight recent loss in the dollar's strength may give US scrap exports an opportunity to further expand.
The most recent CFR Turkey prices increased $2-4/mt from a deal on Monday and $9-11/mt from deals last week. The rise in prices is supported by firmer coking coal prices, decreasing pig iron volumes announced by CIS region providers, increases in Chinese billet prices, restocking by steelmakers, as well as higher price offers for steel products. Yet, the upturn in international finished steel prices is hard to plot as deals done at those new prices have yet to materialize on a grand scale.
Market participants believe that prices have reached the bottom as international markets for scrap and finished goods steel products have been moving upwards recently. The thought that "if scrap prices stay strong, there will not be much choice other than to accept higher prices" is working to support both ends of the spectrum - scrap prices and finished goods.
Taiwan domestic scrap purchase prices moved up this week amid tighter local supply and costlier materials in the overseas markets. The increase of $6-8/mt for HMS I and HMS I/II 80:20 Taiwan experienced domestically may continue giving the US West coast market strength from offers heard early this week at $195-200/mt CFR Taiwan for HMS I/II 80:20. Additionally, rising prices encouraged some US suppliers to pull from the active market, thereby, decreasing supply availability and elevating prices in Central and South America. Export offers in the West coast are expected to increase next week due to demand as well as potential increases in freight costs for November shipments.
Mexico also encountered an increase in domestic scrap purchase prices for HMS I and shredded which will benefit prices on the US Gulf region.