Posted on 23 Jul 2024
Approaching August trading, expectations for scrap prices are seen diverging in the US domestic market. Participants expect either a stabilisation or higher prices, however, with no one forecasting a downtrend.
While some market participants expect prices to finally strengthen due to slow inflow of scrap into yards, some others do not find this likely due to the continuing slide in coil prices amid struggling demand.
A scrap dealer tells Kallanish: “Supply is tight! If mills want to secure their requirements, they will have to pay more. If they delay their requirements and keep their purchases limited, prices might remain unchanged during August trading but see a steeper rise in September.”
For West Coast business, US-origin containerised HMS 1&2 80:20 offers remain unchanged at $347-350/tonne cfr Taiwan, with the indicative deal level at $345/t cfr. However, import demand remains stagnant due to slow steel market sales, low Taiwanese steel mill output and competitive billet offers. Local mill Feng Hsin also maintained its scrap prices for this week. Market players expect demand to resume in late August.
On the East Coast, Turkish mills bought three US-origin cargoes last week, at $390/t cfr Turkey for HMS 1&2 80:20, unchanged from the previous week. Turkish producers are refusing to pay higher prices for scrap due to already squeezed margins, but they have also failed to reduce prices to the desired level.
Source:Kallanish
