Transaction prices in the
US export
scrap market have continued to soften since our last report two weeks ago, with the most recent ex-
US bookings to
Turkey for HMS I/II 80:20
scrap having been concluded at $244/mt CFR; this reflects an approximately $6/mt CFR week-on-week drop from previous levels.
The big question, however, is “how low will this go.”
US export yards have started to push for higher prices, but whether that will materialize has yet to be known.
East Coast sources have said that bad weather has had a negative impact on
scrap inflow into the yards; some have said their intake is off by as much as 50-70 percent. They have also expressed concern that once the weather starts to warm, and
scrap collection efforts pick up, that excess inventory could place downward pricing pressure on the market. Excess
scrap, compounded by low demand for Turkish finished steel products, could leave market players still searching for the bottom.