Offshore demand remains weak while import prices in Turkey, the leading source of demand for suppliers on the U.S. East, continue to soften. Market participants inform SteelOrbis that export yards are not optimistic about overseas prospects and continue reducing heavy melt buying offers domestically but sellers are waiting to hear from East coast mills beginning next week. In early September, East coast pricing for HMS I/II 80:20 was at $152-163/mt and HMS I at $178-183/mt delivered to customer in region.
According to market sources, a Turkish steel producer concluded an ex-US deal on September 23 for 25,000 mt of HMS I/II 80:20 scrap at $210/mt CFR, 12,000 mt of shredded scrap at $215/mt CFR and 3,000 mt of bonus grade scrap at $220/mt CFR.
A scrap trader in the East coast commented, "It is evident that prices for scrap will decline given the lack of competition from the export market coupled by the weak domestic steel order books we are facing." According to a second market participant, "Scrap flows for heavy melt and shredded into yards are on the weak side, but are expected to be sufficient for October given the weaker demand."
Scrap exporters on the U.S. West Coast have also lost some ground in September with HMS I/II 80:20 now at $185-192/mt at port in Los Angeles. In early September, it averaged $200/mt at the Los Angeles port. SteelOrbis has learned of intensifying competition between steel producers in China and the Far East. The largest rebar producer in Taiwan reduced rebar prices by $13/mt this month, for example. In Mexico, while scrap demand domestically holds strong, the devaluation of the Mexican peso is making ex-US scrap more expensive.