Demand for US scrap from both Turkey and the Far East has not picked up in the last couple weeks, and export scrap prices have faltered again. Turkish mills have been trying to secure their scrap needs from Europe for over a month now, as they wait for US export scrap prices to drop further. Depressed steel demand in Turkey and Europe as a whole, compounded by the approach of Ramadan in the middle of next month will likely prevent Turkey from purchasing too many US scrap cargos over the next few weeks, and prices are poised to fall. The latest deals for ex-US East Coast bulk scrap sold to Turkey were for approximately $385/mt CFR for HMS I/II, down about $30/mt in the last couple weeks. Turkish mills' latest offers are now approximately $380/mt CFR for a combination of HMS I/II and shredded scrap, and while exporters have been resisting lowering prices, if demand remains scarce, prices are bound to fall.
US domestic scrap prices fell $50-$70/lt in the beginning of June and many are already predicting further softening next month, so Turkish mills believe that if they delay bookings, prices could again drop in the next couple weeks. Finished steel demand, and consequently scrap demand, is also weak in the Far East, causing container scrap prices off the US West Coast to decline. Ex-US HMS I/II container scrap was sold to Taiwan about a week ago at $390/mt CFR, down from $410-$420/mt CFR two weeks ago. However, the latest offers from Taiwan are about $10/mt lower. China still has not fully returned to the US market looking for scrap, and is still waiting until prices bottom before snapping up a few cargos.