Market participants’ expectations regarding August pricing are diverging following the downward price settlement in July. Although some market participants, mostly suppliers, think the downtrend will reverse in August, others doubt this mostly due to the negative developments in Turkey, the largest export destination, Kallanish notes.

July prices were mostly settled towards the end of last week in the US domestic market. Prices in the Midwest recorded decreases from June, by $30/gross ton for prime scrap and $20/gt for shredded scrap, while in the South they remained mostly unchanged as they were already lower compared to the Midwest.

On the US West Coast, Taiwanese scrap prices remain rangebound due to subdued scrap demand resulting from weak steel sales. Following a deal for US-origin containerised HMS 1&2 80:20 concluded at $360/tonne cfr Taiwan last week, fresh offers stand at the same levels. Local electric arc furnace mill Feng Hsin cut its domestic buying price by TWD 200/t ($6).

On the East Coast, confusion is growing in the Turkish market after Turkey raised tax on petrol on Sunday to expand its 2023 budget, taking the unleaded petrol price to TRY 7.52/litre ($0.29) from TRY 2.52/l previously. This, in turn, followed the VAT hike a week earlier.

Turkish mills booked only a few deep-sea cargoes at cheaper prices last week, none of which were from the US. Following the EU-origin HMS 1&2 80:20 booking at $364/t cfr Turkey towards the end of last week, no market player believes Turkish buyers will pay above $365/t cfr for the same grade from the US.

On Monday, the first business day following the petrol price hike, Turkish mills opened rebar sales at $575-600/t ex-works. However, demand remained weak. Market participants expect the lira’s depreciation to accelerate after Turkey’s Central Bank’s interest rate decision on 20 July. Mills’ demand for scrap is likely to remain below regular volumes as weak steel sales are causing producers to run their facilities at low utilisation rates.