Two weeks ago, ex-US scrap prices to Turkey were already on a downtrend, with transactions concluded at approximately $342/mt CFR for HMS I/II (80:20), while shredded scrap cargos, at about $347/mt CFR, were also expected to decline further. Last week, price erosion was seen across the board, as cargos for HMS I/II (80:20) were booked at approximately $335/mt CFR, with shredded scrap cargos being concluded at $340/mt CFR.
Although sources close to SteelOrbis say that Turkish mills will continue to push for lower prices, the request might not be honored if US export yards choose to step away from the market. “The yards are having a hard time getting the scrap collectors to bring their prices down, and in that, they’re having a harder time maintain flow into the yards,” according to one East-coast based source. At current, if the downward pricing pressure from Turkish mills continues, it’s unclear whether export yards will try to hold off with booking until December and January, when prices generally start to rebound, or if they will begin shipping scrap inland to US domestic mills. What is safe to say, however, is that all options are being considered.