Posted on 18 Oct 2018
US scrap prices for November look to be steady-to-up as the market enters what is typically a slow period, one industry source tells Kallanish.
Scrap prices are holding and although there is flow into Turkey, bookings have been mostly of European origin, our source continues. European cargos, consisting of numerous grades to achieve an effective HMS 80/20 mix, are trading at around $325/tonne including freight into Turkey. US exporters are asking in the area of $330-335/t including freight.
“As long as cheaper cargos are available, the mills will tend to stay away from the US market. There has been no improvement in the rebar prices to support higher scrap prices. Something has got to give and it does not look like the finished steel prices are it,” says the source.
A reduction in tariffs from Turkey, from 50% to 25%, would create additional downward pressure on domestic rebar pricing.
“I would expect Turkish rebar prices to be competitive in the US market. More rebar sales equals more scrap demand," he says. "That would help put a floor on international prices and promote more positive sentiment in the US scrap market,”
