An increase in US ferrous scrap export tonnage and prices to Turkey this week have bolstered pricing views for September domestic scrap procurement, market sources said Wednesday.
On Tuesday, a US supplier sold a bulk cargo of scrap to a Turkish mill with the heavy melting scrap I/II (80:20) portion priced at $388/mt CFR Turkey. The price was up $16/mt from a booking the week of July 7 from the same supplier. Offers into Turkey have continued to climb, according to market sources, who anticipate deals at $390/mt and higher in the near future.
"I would call it a firm sideways today," one mill buyer said of US September scrap pricing. "I don't see any downside at all right now."
Scrap exports had been seen as the weak link in the domestic market that had steady mill demand with 78.8% capacity utilization last week, strong order books and steady-to-rising finished steel pricing.
"The market has momentum in my opinion," one broker said. "It's hard to look at most domestic fundamentals and be sad about much today. This is a supply side market."
This week, at least two major mills that do not normally make mid-month scrap buys were in the market seeking extra tonnage from suppliers. No sales were heard finalized. "Bullish moves," one scrap dealer noted.
