Earlier in August, SteelOrbis reported expectations of the US domestic scrap settling strong sideways in September with the potential of gaining $10/gt ($10/mt) compared to August settled prices. Sources reported a maximum negative expectation of a price erosion of $5/mt across most grades.
As lower import scrap prices by Turkish mills surfaced at the end of the week ended August 23 and early in the week of August 26, the expectations in the market have become subdued. Several sources informed SteelOrbis that the market will be weaker in September than initially expected. A source in Pennsylvania noted a “weaker scrap trading situation with little to no likelihood of sideways offers by the mills.” Scrapyard prices are also reportedly being decreased by $10/gt ($10/mt) at the feedstock level this week. Additionally, sources report “decent scrap flows that are keeping up with demand despite the lower scrap buying prices at the scale.”
Most sources noted the expectation of a loss of $10/gt ($10/mt) across all grades, although, a few feared the loss of last month’s $20/gt ($20/mt) gain in the early September trading week. A source added, “The $20/gt ($20/mt) potential loss on the East coast may be in tandem with the downward pressure on scrap export prices to Turkey.” Both the volume and scrap import prices from Turkish buyers are lower globally as Turkish mills struggle to sell finished steel products.