Posted on 16 Apr 2024
Following the US scrap price sideways trend in April, most US market participants expect values to remain flat in May trading, although some even find an uptick possible, specifically for prime grades.
A dealer tells Kallanish: “Mills’ scrap buying interest has improved. On the other hand, sheet prices continue their steady climb, with expectations for further rises. These are likely to support scrap pricing. The spread between shredded and busheling at only $10-15/gross ton makes me think that there is a potential uptick for busheling prices, specifically if sheet prices continue their rise.”
The uptick, however, should remain limited to $10-15/gt, with market participants still questioning the fundamentals behind hot rolled coil price rises.
Supply and demand seem to be in equilibrium with seasonal factors supporting supply.
For US West Coast business, following US-origin containerised HMS 1&2 80:20 bookings at $360/tonne cfr Taiwan last week, offers have risen to $365-368/t cfr Taiwan.
On the East Coast, activity paused in Turkey last week amid the Eid holiday. The $386/t cfr Turkey reported deal price for HMS 1&2 90:10 was rejected by the seller, despite confirmation that a southern mill had purchased a cargo originating in the US. A UK-origin deal was concluded by the same mill at $379.5/t cfr for HMS 1&2 80:20.
Turkish mills, suffering from export restrictions to Israel, are eyeing political developments in the Middle East following escalating tension between Iran and Israel. They have consequently started the week with subdued scrap purchases after the long holiday.
Although some scrap suppliers expect the market to resume where it left off before Eid, most Turkish mills are seen expecting a softening in prices amid worsened sentiment and poor steel sales.
Source:Kallanish
