Scrap trading in the US, which kicked off on 7 June, continued on Monday as the prices did not fully settle until the end of last week.

Amid weakening steel prices and supply outpacing demand, scrap prices faced significant pressure in US domestic market, as expected by all market participants. The latest recovery seen in Turkish scrap market failed to support domestic scrap prices in the US.  

Initial bids from US mills stood at $40-60/gt lower from May prices for shredded and prime grades depending on the region. Cut grades were down by $30-45/gt from May deliveries while trading was still underway on Monday.

Turkish mills’ resumption of scrap demand and higher prices in the nation have encouraged US suppliers to sell into Turkey, and a significant rise in US offers was observed towards the end of last week. Although US suppliers were aiming to sell HMS 1&2 80:20 at above $395/t cfr Turkey, they failed to reach these values amid numerous offers. Latest bookings on Friday from the US appeared at $391/t cfr for HMS 1&2 90:10 and $410/t cfr for shredded and bonus grades.

Amid a sufficient number of offers from all regions, Turkish mills have had a silent start to the current week in terms of scrap demand.