Two weeks ago, a cargo of 20,000 mt of HMS I/II 80:20 scrap to Turkey was concluded at approximately $205/mt CFR. This week, a Turkish steel producer concluded an ex-US deal for HMS I/II 80:20 scrap at $200/mt CFR. Sources close to SteelOrbis point out that Turkish mills continue to try to push prices down due to weakening prices for Turkish finished steel exports.
At the start of the week, US export yards had been trying to hold their line at $200/mt CFR, however Turkish steel producers have set their bids at approximately $190/mt and below. Sources close to SteelOrbis have confirmed that since that time, US export cargo prices for HMS I/II 80:20 scrap to Turkey have softened. The most recent booking out of the East coast took place at $192/mt CFR, which is just slightly above what Turkish steel mills were bidding. Other sources have said they believe that the larger, publicly traded companies will need to sell scrap cargos at lower prices, and “will not be able to lay down or hold back. Export seems scary and when everything is done, export prices to Turkey will end up at $185-$190/mt CFR, delivered.” Scrap demand in the US East coast market is also expected to trend weak in October due to shoddy demand for scrap and US finished steel products, sources say, which is likely to place downward pricing pressure on US domestic market prices, as well.