Scrap exporters have lowered buying prices at their terminals along the US East Coast since last week, as market sources said they are likely preparing for lower-priced sales when Turkish mills return to the market later this week.
One major exporter lowered prices $7/lt across the board, while other exporter offers to local dealers were heard to have been lowered even further.
Based on new offers and transactions, Platts on Monday lowered its daily assessment for heavy melting scrap No. 1 delivered East Coast dock to $300-305/lt - down $10/lt.
"Everybody has a lot more stuff coming in," one exporter said of improved scrap flows in the US. "Everybody is planning for a lower number [to Turkey]. The month isn't over yet and already they are lowering prices."
Before the Easter holiday weekend, bids and offers on a CFR Turkey basis from US exporters and Turkish mills indicated price levels of $377/mt and $383/mt for HMS I/II (80:20) and shredded material, respectively.
One major US exporter purchased 15,000 lt of shredded scrap from a Northeast shredder last week at $375/lt delivered dock. The sale price included $15/lt in freight to the export terminal. This mid-month purchase was described by some as "distressed" tons, so it was deemed unrepeatable and excluded from the assessment.
