US export scrap cargo prices to Turkey have fallen by approximately $25/mt CFR since early July and those within the US East Coast markets say they are feeling similar pressure within the US domestic markets.
At least one mill in the Philadelphia/ East Coast region will be undergoing planned maintenance during August, a source said, which will lead to lighter buying patterns. Early July shredded scrap transactions in this region settled down from $280/mt to $260/mt, while prices for HMS I/II started at $250/mt but settled down to $235/mt which is consistent with previous reports that a major US scrap producer was making a strong move to take the market down. Other sources close to SteelOrbis have said they do not believe the downward pricing pressure in the Philadelphia region is unique. We forecast that prices in the central and Eastern US will trend down by approximately $20/mt when mills enter the market in August.