Posted on 16 Jan 2024
US January domestic scrap trading wrapped up with a decline at the end of last week, contrary to the positive expectations in December.
Most market participants were expecting further rises in January trading following the December gains. Although this did not materialise, neither did the steeper declines that were forecast at the beginning of the year.
Consequently, Midwest No.1 busheling prices fell around $25/gross ton from December values, while shredded fell by $10/gt and cut grades remained unchanged.
Early expectations regarding February trading are seen diverging. While some market participants think harsher weather is likely to impact flow and therefore prices, some think weak sentiment prevailing in the global market will have a negative impact on scrap prices.
For East Coast business, US suppliers failed to achieve transactions at above $430/tonne cfr Turkey for HMS 1&2 80:20. One supplier is heard to have decreased its offer price gradually from $432/t to $429/t cfr, while another US supplier decreased its offer to $428/t cfr.
Although no transactions from the US were heard last week, Kallanish does not find a price above $425/t cfr for HMS 1&2 80:20 workable in Turkey. The daily assessment for premium HMS 1&2 80:20 cfr Turkey therefore declined to $425/t on Monday.
On the West Coast, Taiwanese buyers are seen to have resisted prices at $380-385/t cfr for US-origin containerised HMS 1&2 80:20. Although scrap demand, in general, remained weak, some deals from the US were concluded at $375/t cfr Taiwan last week. No recovery in demand is foreseen before the Lunar New Year holidays.
Source:Kallanish
