Prices to the US East Coast (USEC) docks remained unchanged for cut grades in New York and Philadelphia, while the higher end for shredder feed was reduced and the grade settled at $240/gt delivered export yard from $240-250/gt delivered last week. Prices in Boston trended sideways for another week as contacts in the New England region maintain that they expect prices to decrease any time soon.
Contacts in USEC mention that exporters will be looking to preserve their margins amid a weaker outlook for the export market to Turkey. Additionally, the cost of ocean bulk freight decreased to $44-45/mt CFR Turkey from $46-48/mt CFR last week. It is the second, albeit small, contraction in the cost of bulk freight rates at a time when those rates were one of the factors driving up the higher export prices by USEC exporters.
In New York and Philadelphia, the price of HMS I remained at $270-280/gt delivered export yard, while shredder feed, as mentioned, fell slightly to $240/gt delivered. The price of P&S 5ft remained at $295-305/gt delivered. In Boston, the price of HMS I is still at $260-265/gt delivered, while P&S 5ft sits unchanged at $270-275/gt delivered, and shredder feed at $170-175/gt delivered.
In addition to lower ocean freight rates for bulk material, the Turkish import market has shown signs of bearishness. Increases in import prices are out of the question for now. There have been mentions that Turkey is lagging in its purchases, specifically, that it should have bought ten more cargoes for June shipment. It remains to be seen if the country adjusts its steel production program in light of softer demand for finished steel and the possibility of significant increases in energy costs, in the 25-30 percent range.
Even though the last reported deal to Turkey for HMS I/II 80:20, which came from the UK, was at $406/mt CFR Turkey, levels could come down significantly from that. Some sources point to bids for US material could decrease to $405-410/mt CFR Turkey, or even lower. The next US deal is expected not to surpass the $410/mt CFR threshold.
The price of billet, mainly from Russia and China, has remained stable at $510-530/mt CFR Turkey and is actually higher from $465-490/mt CFR at the end of January.
