With US August scrap trade expected to start by mid-week, almost all market participants expect to see a definite price decrease for obsolete grades. Some even think obsolete grade scrap prices will fall up to $40/gross ton. This is the result of strong flow of material and price declines seen in both East and West Coast export destinations.

Prime grades, meanwhile, are expected to remain unchanged from July trading. As a result, the spread between shredded and busheling is expected to hit a new record.

A scrap supplier tells Kallanish: “Although sheet prices are hitting new records each day and scrap demand remains strong in the domestic market, mills are aware of the strong flow. As a decrease is seen as definite in August trading, I am hearing that some mills have cancelled their orders last week. This will further improve their record-high margins.”

Obsolete scrap prices, meanwhile, are decreasing further in both West and East Coast export destinations.

US-origin containerised HMS 1&2 80:20 prices continued to fall in Taiwan last week. Although ex-Japan offers have also decreased, they are still uncompetitive. However, the absence of other Asian countries’ demand due to lockdowns, the sharp decline in iron ore prices, decreasing scrap prices in Turkey, and sentiment turning bearish have resulted in Taiwanese mills’ scrap demand remaining weak.

Following a booking at $440/tonne cfr Taiwan towards the end of last week, offers have decreased to $440-445/t cfr from $450/t cfr last Monday. Buyers’ price ideas have declined further below $440/t cfr.

On the East Coast, Turkish mills have started booking deep-sea cargoes following the Eid holiday. However, despite the recovery in demand, prices could not avoid falling as supply outstrips demand. Last week, a US supplier sold HMS 1&2 80:20 at $471/t cfr Turkey, down from $475/t cfr a week earlier. EU-origin HMS 1&2 80:20, meanwhile, has decreased to $460/t cfr on the latest bookings concluded towards the end of last week.