Two weeks ago, SteelOrbis reported that US export yards were considering lowering their export scrap prices to Turkey by $12-$15/mt CFR to match lower-priced offers from other regions; the newest bookings, however, were concluded at $227/mt CFR for HMS I/II 80:20, $232/mt CFR for shredded scrap and $237/mt CFR for bonus grade scrap, which puts the market at down $25/mt CFR.
Sources close to SteelOrbis point out that cheap scrap export prices from other regions, such as St. Petersburg, where a recent cargo for HMS I/II 80:20 was transacted at $220/mt CFR, have helped place downward pricing pressure on the market. Others add that the unforeseen downtrend in US domestic scrap prices have caused US exporters to be more open to selling at lower price points. Some within the domestic market are already expressing concern that domestic scrap prices could trend downward again in August. “There just isn’t any real sign of stability,” he said. If US domestic prices do settle down in August, this could give Turkish buyers an upper hand against US export yards in future negotiations.