In early September, the US domestic scrap market trended down approximately $10-$15/mt CFR from levels seen in August. By the middle of the month, sources close to SteelOrbis believed October prices could soften by another $10/mt CFR, but new predictions put October prices down between $20-$30/mt CFR. This could have prices in the East coast Philadelphia region, which transacted at $185/mt for HMS I/II, $215/mt for shredded scrap settling and $205/mt for P&S scrap all settling well below $200/mt.
Export prices have fallen substantially in the past several weeks, with the most recent ex-US booking of HMS I/II 80:20 scrap to Turkish producers took place at $190/mt CFR, reflecting a $40/mt downtrend from levels seen in late August. Weak demand for domestic finished steel, compounded with oversupply of scrap, continues to place downward pressure on the market. Sources close to SteelOrbis say they believe that October prices are unlikely to hold stable and that additional softening could come in November.