US East coast export scrap prices to Turkish steel producers have ticked down yet another notch since our last report two weeks ago, when an ex-US cargo of HMS I/II 80:20 to Turkish was concluded at $180/mt CFR.
In the early part of the week, an ex-US deals for 13,000 mt of HMS I/II 80:20 scrap was concluded at $177/mt CFR, while a second was concluded at $175.25/mt CFR. A third deal was later concluded at $177/mt CFR.
One source close to SteelOrbis has said they believe that March export prices could fall even lower. “Export is set in its trend. $170-175/mt CFR will be the general price to Turkey and the current opportunity for lower levels seems more likely than higher levels,” he said. “With this, even though freight rates to Turkey are extremely low, the net FOB price is warranting that the bulk exporters begin to make domestic sales.”
US East coast domestic prices, however, are expected to trend soft in March due to lack of demand from US mills. There is also some uncertainty as to the fate of the Pennsylvania-based ArcelorMittal Steelton mill, which produces longs products, as the company has confirmed it is in discussions concerning the sale of this and two other long product mills in the US. “Soft demand from East coast mills has many thinking that the market is set to come down in March,” that source said.
Other sources have indicated that mills in this region have been given directives to “not take in a lot of scrap” due to concerns that market prices could fall even further. “Domestic was strong sideways for February but that was more about the lack of scrap flow due to weather. March, we believe, will not be sideways.”