Two weeks ago, cargos to Turkish mills for HMS I/II 80:20 and shredded scrap were transacted in the respective ranges of $227/mt CFR for HMS I/II 80:20, and $232/mt CFR, which had put the market at down $20/mt CFR. Since that time, cargo prices for HMS I/II 80:20 ticked down to $225/mt CFR before climbing back up to an approximate range of $227-$229/mt CFR, which had some wondering if the market was heading for an upswing. Cargos from other region, such as Canada and the EU, have since been transacted at higher price points.
US sources, however, remain skeptical and don’t believe prices will shoot upward. Iron ore and coal are still cheap, they said. It should also be noted that US domestic scrap prices are forecast to drop across the board for August buys, with sources throughout the East Coast placing their bets at “down $15-$20.” One East Coast export source close to SteelOrbis said that based on all the above, “I just don’t see things turning themselves around any time soon.”