US domestic
scrap prices, which settled at approximately $218/mt ($215/gt) for HMS
scrap, $238-$244/mt ($235-$240/gt) for busheling
scrap and $254-$264/mt ($250-$260/gt) for shredded
scrap during the April buy-cycle have settled up across the board for May:
HMS $264/mt ($260/gt)
Shredded $295-$300/mt ($290-$295/gt)
Busheling $295/mt ($290/gt)
Last week, SteelOrbis reported that although most East coast sources believed the market would settle up $20-$30/mt ($20-$30/gt) range, some believed that prices could settle up by as much as $50/gt “the closer you get to the docks.”
The latter suspicion turned out to be most true.
May’s firmness in
US domestic East coast
scrap prices are directly tied to recent upticks in
US export
scrap pricing.
A Turkish steelmaker today concluded a cargo of HMS I/II 80:20 at $330/mt CFR. This is a stark contrast from early April when Turkish steelmakers concluded ex-
US cargoes of HMS I/II 80:20
scrap at $246/mt CFR and $254/mt CFR, respectively.
“The exporters have all raised their paying prices to
scrap collectors in order to fulfil the cargoes that are set for late June and early July shipment,” one source said. “The only way that the domestic mills were going to be able to meet their programs was to raise their paying prices, too.”