The US steel industry has been experiencing significant volatility in scrap prices, affecting both domestic and international markets. In late February, negotiations with Turkish companies were targeting HMS 1/2 at $377/t CFR. Turkish metallurgists managed to buy some feedstock from the European market and then from US suppliers. Soon the Americans started to reject counter offers of $380/t CFR and wanted to reach $385/t CFR.
In late March, with the US expectation that prices would rise to $400 CFR Türkiye in the short term, purchases from the US increased, reaching $389 CFR Türkiye. However, a sale to Türkiye this week was realized at $384 CFR Türkiye.
The US is Taiwan's main ferrous scrap supplier with 81,249 tons shipped in February. In February, Taiwanese buyers held out at $380-385 per tonne CFR for US-origin containerized HMS 1&2 80:20 at $350 CFR Taiwan in March.
Market experts expect the US domestic steel market to be flat to slightly positive in April. Although overall activity remained subdued, there were signs of improvement. Steel mills resumed production after maintenance shutdowns, which may have boosted buying activity compared to March levels. However, concerns over steel demand remain, which poses challenges to market stability.
How the US-Türkiye deals are progressing in 2024;
January deals;
US - Black Sea Deals:
The agreement between the two sides at $415 per ton and $430 for PS (Presovana Sheet) covers the entire month of February and was completed on January 2nd. The deals covering February reflect the stability and demand in the sector.
US - Mediterranean Deals:
In another US-Türkiye connection, a scrap deal between two companies at a price of $419 per ton was completed recently.
February deals;
US-Marmara Deals:
HMS (80:20) scrap at $419.5 per tonne CFR Türkiye,
HMS (80:20) scrap at $422 per tonne CFR Türkiye,
HMS (90:10) scrap at $425 per tonne CFR Türkiye,
US-Mediterranean Deals:
HMS (80:20) scrap at $415 per tonne CFR Türkiye.
March deals;
US-Aegean Deals:
HMS (80:20) scrap at $385/t per tonne CFR Türkiye,
HMS (80:20) scrap at $385 per tonne CFR Türkiye,
HMS (85:15) scrap at $378.5 per tonne CFR Türkiye,
HMS (80:20) scrap at $389/t per tonne CFR Türkiye (bonus $409/t).
US-Marmara Deals:
HMS (80:20) scrap at per tonne $380/t CFR Türkiye.
First week of April deal;
US-Marmara Deals;
HMS (80:20) scrap at $380 per tonne CFR Türkiye.
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