Export scrap prices off the US East Coast to Turkey have continued their month-long trend of slow firming. Turkish mills have shown a voracious appetite for scrap imports in the last couple months, allowing prices to firm week-on-week. About 10 scrap cargos were sold to Turkey in the span of one week in the middle of this month, not including the plethora of scrap Turkey acquired from Europe. Throughout the last month, ex-US scrap prices to Turkey have been increasing a few dollars every week, a trend that has not abated. US East Coast scrap exporters said that this past week has been quiet, but it's no reason to panic: Turkish mills have purchased plenty of scrap for September production already, and are likely taking a breather before jumping back in the market, and but prices are not anticipated to suffer as a result.
The most recent ex-US East Coast to Turkey sales--done about a week or so ago--were at $380/mt for HMS I/II, $385/mt for shredded scrap and $390/mt for P&S scrap, compared to a mixed bulk cargo price of about $382/mt CFR Turkey just two weeks ago. Prices are up more significantly when compared to late July transactions at $369/mt for HMS I/II scrap. On the US West Coast, however, all has been quiet in the last couple weeks, as Taiwanese mills took a step back from purchasing scrap, at least from the US, but are likely to be more active next month. The strength in the US East Coast export scrap market is poised to offer some much-needed strength to US domestic scrap prices during September trading, but not necessarily enough to allow prices to increase or even remain neutral. Shredded scrap in the Ohio/Pittsburgh area, where prices are higher in other regions, could come down slightly next month, and there continues to be an overhang of scrap in the Midwest as well.