Sources inform SteelOrbis that mills in various inland regions are offering to purchase February scrap at January prices. The sideways negotiations on shredded, heavy melt and P&S grades was expected, but mills in various parts of the US, including Michigan and Ohio, reportedly also offered to purchase prime grades, such as busheling, at sideways pricing. Some sources report slight downward pressure on busheling scrap prices, but given the desire to obtain necessary scrap in February, several sources expect support for prime grades during the negotiations by the time February prices settle.
East coast prices, unlike the inland regions, are being affected by erosion in export prices, specifically, the recent ex-US deal to Turkey for HMS I/II 80:20 at $345/mt CFR Turkey. A source noted, “We are back to early December export prices to Turkey. Domestic demand and outlook is strong. We will just see the export effect.” The latest deal export scrap deal decreased $3/mt from the most recent ex-US deal on the same grade at $348/mt CFR Turkey, reported by SteelOrbis on January 30. Over the past two weeks, HMS I/II 80:20 prices declined $18/mt from $363/mt CFR Turkey, reported by SteelOrbis on January 19. Export scrap prices to Bangladesh, Pakistan and India have also softened over the past several weeks.
The US domestic scrap market is expected to settle early in the week beginning February 5.