US scrap prices are showing no signs of recovery during July trading, although they were not yet fully settled on Monday, notes Kallanish.

US values have thus failed to strengthen since the beginning of the year.

Domestic scrap prices, which are expected to fully settle in the first half of the current week, are being hit by the gradual decline in hot rolled coil values and weak steel markets. They were also impacted by mills cancelling shipments of undelivered material at the end of June.

Although scrap dealers expected tight supply and stronger export values to support domestic prices, this does not seem likely. In a best-case scenario, prime grades are foreseen remaining unchanged from June values, while other grades are expected to weaken by up to $20/gross ton, depending on the grade and region.

For US West Coast business, US-origin containerised HMS 1&2 80:20 prices recorded no change since last week, while activity remained limited amid the US Independence Day holiday and weak demand for scrap in Taiwan. US-origin containerised scrap deals occurred at $342-345/tonne cfr Tawan last week, unchanged from the previous week.

On the East Coast, US-origin HMS 1&2 80:20 prices strengthened slightly in Turkey on the latest deals which appeared at $390/t cfr, up from $389/t cfr Turkey a week earlier. Market expectations point to a more or less stabilised trend in Turkey, while most market participants do not find higher prices for scrap affordable.