Scrap prices to the US East Coast (USEC) docks remained unchanged as HMS I in New York and Philadelphia was unchanged at $280-290/gt delivered export yard. Yet market stability could be coming to an end as some market fundamentals start to falter. Turkish mills have been cautious about purchases due to the uncertainty still surrounding the US-Israel-Iran war; additionally, Turkish steel prices have been softening.
The price of P&S 5ft to New York and Philadelphia docks remains at $310-320/gt delivered, while shredder feed trended flat this week at $250-260/gt delivered.
Oil and freight prices are also frequently cited as factors in the export market, driving up prices to Turkey in recent weeks. The price of US-origin HMS I/II 80:20 has grown to $411.5/mt CFR Turkey from $404/mt CFR on Apr 23. Yet ocean freight costs have stalled, and this week the bulk ocean freight cost from USEC is reported unchanged at $46-49/mt CFR Turkey. The price of West Texas Intermediate (WTI) oil has maintained its upward trend, rising to around $102 per barrel from $93 per barrel over the same period.
The war has affected global oil supplies by disrupting the Strait of Hormuz shipping route. A resolution to the war was reflected by global commodity markets last week, yet as of Tuesday afternoon, US and Iranian officials continue to exchange threats of escalating the conflict.
Scrap prices to the Boston docks were unchanged this week as well, with HMS I at $255-265/mt delivered export yard, P&S 5ft at $265-275/gt delivered, and shredder feed at $155-165/gt delivered.
Turkish buying, which has been slow, could decline in the second half of this month due to a couple of national holidays. On May 19, the Atatürk, Youth, and Sports Day will be observed, while half a day is observed on May 26 for the Sacrifice Feast Eve. And after that, there is the Eid al-Adha celebration from May 27-30.
Turkish domestic steel prices have continued to fall this week, with wire rod prices down $5-10/mt due to sluggish demand and Turkish Lira depreciation.
The limited Turkish scrap prices have not softened the price of US-origin HMS I/II 80:20, though. On Tuesday, a deal from a France-based seller was seen at $408/mt CFR Turkey for that grade, which would place the US price equivalent at $413/mt CFR, around $1.5/mt above the current level.
