With December trading approaching, the US scrap market remains firm, despite the pressure seen in major export destinations. Market participants foresee no downward trend, particularly for shredded scrap prices. The expected rise in shredded prices, however, is seen varying depending on region.

A US scrap supplier tells Kallanish: “A downward trend does not seem likely for shredded scrap but I doubt there’ll be an increase above $10/gross ton. Some still expect a $40/gt increase but I don’t think it will materialise.”

December trading is expected to begin early next week.

On the West Coast, the number of US-origin scrap offers remained limited last week due to the Thanksgiving holiday at the weekend. As a result, US suppliers have managed to obtain higher prices compared to the previous week.

On the East Coast, Turkish mills have managed to effect a decrease in scrap prices, even from the US. A long steel mill has bought a cargo comprising 25,000 tonnes of HMS 1&2 95:5 and 15,000t of bonus grade at $508/tonne cfr Turkey. Although US suppliers have tried to keep their prices at above $500/t cfr, they have failed to do so due to weak demand in finished steel markets.

Turkish mills achieved even lower prices at $488-490/t cfr for premium HMS 1&2 80:20 from the Baltic towards the end of last week, due to the increase in offer volumes.