After kicking off last week, US scrap trading is expected to settle during the first half of the current week, but suppliers are seen resisting lowering prices, Kallanish notes.
Towards the end of last week, a US producer gave a bid for cut grades and busheling at a $30/gross ton and $70/t discount respectively. However, suppliers are seen resisting these discounts, specifically the $70/gt discount on prime grades.
“This is a sharp decrease and carries busheling prices below shredded in some regions,” says a scrap supplier.
Most market participants expect US prices to settle within 2-3 days, with cut grades and shredded expected to fall by $20-30/gt and prime grades by $50-70/gt from July prices.
On the West Coast, buying interest for US-origin containerised HMS 1&2 80:20 remains weak. Japanese scrap is attracting more attention after its spread to US prices narrowed to almost zero. While buyers’ price ideas for US material do not exceed $320-325/tonne cfr Taiwan, US suppliers are seen targeting higher levels, at above $335/t cfr, following the rebound in Turkey last week and yen appreciation.
On the East Coast, US suppliers are increasing their price targets in Turkey despite the decline in the US domestic market. Offers in the market are scarce, and US suppliers are seen targeting to sell HMS 1&2 80:20 at above $400/t cfr Turkey. On Monday, there were rumours of a US-origin HMS 1&2 80:20 sale at $388/t cfr being done last week. This is, however, denied by the seller.
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