Posted on 15 Oct 2019
Scrap prices in the US domestic market have, as expected for the October-buying round, declined by $30-40/tonne, depending on the grade and region.
Weak demand and lower prices in the finished steel markets are the main factors behind the price decreases. Although scrap prices in the export markets have shown recovery, this has had no positive effect on domestic prices.
Although most market players think prices have bottomed and flow into yards has decreased significantly, they are not sure how demand will trend for scrap in the domestic market.
The current Midwest price for HMS I stands at $175-185/tonne delivered, dropping from $220-225/t delivered in September, Kallanish notes.
Turkish deep-sea scrap import prices, meanwhile, have increased further. In the most recent deal, concluded at the end of last week, the ex-Baltic HMS I/II 80:20 price rose to $237/t cfr Turkey. The previous booking from the same destination was concluded at $234.75/t cfr.
With prices increasing in export markets, exporters have an advantage in terms of profitability compared to local suppliers who have to struggle with a weak market.
