Turkey Export Order a Sign of Higher Scrap Prices Come January

If you are a steel buyer thinking that this rash of price increase announcements has run its course you may want to re-think the market forces again. One of the major scrap exporters booked a cargo of 80/20 mix to Turkey at $296 per metric ton delivered. They also sold shredded scrap at $301 delivered. According to SMU sources this deal is $15-$20 per metric ton higher than the most recent sales off the east coast.

One of our scrap sources told us, “…It is anticipated we will see additional sales from major shippers at higher levels in the coming weeks. LME scrap contracts are moving up and have breached $300 for January. These sale levels undoubtedly will push domestic prices higher next month. I expect prices up $20-40gt depending on regions.”