US: Scrap buyers are unwilling to accept higher offers for December

It
is reported that there are no buyers for shredded scrap in US domestic scrap market
on higher prices. A northeast US shredded scrap supplier is offering the
material with $5/MT higher than the current price for December delivery. But
the offers were with no buyers in the market.

The
same supplier has increased the shredded scrap prices by $15/MT on Monday
sensing a dull demand in the market. Shredded scrap prices are prevailing at $385-390/MT
Ex Midwest mill, up by almost $50/MT from October price levels.

Price
determination for December deliveries remains uncertain.

Shredded
scrap was traded at an average price of 338/MT in October. It surged to $383/MT
delivered Midwest mill during the first week of November and then again moved up
by $5/MT to reach $388/MT.

US offers to Turkey fall $15/MT CFR

Scrap
prices to Turkey from the US have fallen around $15/MT in the past 2 weeks.  Offers were expected to rise due to bad weather
conditions for shipments of cargoes. But clear weather has slowed the demand
pattern from Turkish mills. It has lent the bearishness to the market’s overall
sentiment regarding pricing and demand.

A
deal was closed for the first time this week when a large steel producer has imported
bulk scrap. A 20,000 MT UK-origin HMS 1&2 (80:20) cargo was sold at $387/MT
CFR Turkey (Marmara port).

US
based Scrap sellers commented that the country maintain a $20/MT premium over
European HMS 1&2 (70:30 mix) because Turkish mills still need to buy
US-origin cargoes even with the higher offers.

HMS
1&2 (70:30) is being offered at $380s/MT CFR Turkey from European suppliers
while Turkish mills are trying to negotiate with them for further corrections, but
so far could have not been successful.