Turkish producers returned to the international scrap market as of last week with four of nine cargos booked from US docks at prices reported at $295-$305/mt CFR HMS I/II 80:20. The remaining five were booked with European origins. Although the return of Turkish scrap purchasing on the international market is a welcome sign, some caution that pricing is expected to continue its downward trend going forward. In fact, offer prices heard from Turkish producers have already dropped to $270/mt CFR HMS I/II 80:20 as of late last week.
As international purchasing activity increased in Turkey, Far Eastern producers have chosen to remain quiet. The lack of purchasing activity by Far Eastern producers is observed to be based on operable inventory levels and not price speculation. Current offer prices for containerized HMS I/II 80:20 are heard at $320-$330/mt CFR, down $40 from early this month.
Adding to the purchasing power of international markets, US domestic scrap prices are anticipated to drop as much as $30/lt depending on grade, region, and international purchasing activity. In an attempt to sell ahead of the expected decreases in US domestic scrap prices, US suppliers are already selling ahead into July, an industry source tells SteelOrbis, a position typically not taken until later in the month. The early push into July selling by US suppliers could be seen as an early indication of where US domestic scrap prices are heading.