US December scrap trading kicked off last Friday, with some mills’ initial bids at lower prices compared to November trading, notes Kallanish.

The mills that have placed initial bids are seen targeting to buy scrap at $10-20/gross ton lower on-month, depending on the grade and region. However, scrap suppliers are seen resisting mills’ lower bids as supply has already been disrupted by harsher weather conditions.

Mills, on the other hand, are pointing to the sharp price fall in export destinations throughout November and weak steel demand ahead of the winter holidays. 

Negotiations continued on Monday.

For the US West Coast, US-origin containerised HMS 1&2 80:20 prices have continued to fall in Taiwan, with deal prices hitting as low as $295/tonne cfr. The Taiwanese domestic mill maintained its price for scrap and rebar on Monday, meanwhile, as the outlook for demand is stable.

On the East Coast, Turkish demand for scrap remained almost non-existent last week, with no confirmed deals from the US. The latest US-origin deal was concluded at $342/t cfr Turkey the previous week. Market participants expect Turkish demand to recover this week due to December being a short month and Turkish mills still needing January-shipment cargoes.

Turkish steel and scrap markets are eyeing the next scrap import booking into Turkey and debating its possible price level. Market participants do not find further declines likely for Turkey’s January-shipment purchases and think that a satisfactory stimulus announcement from China may even lift scrap and steel values. Chinese authorities’ pledge on Monday to ease the country’s monetary policy stance for the first time in 14 years has fuelled sentiment.