Weak long steel demand is finally taking toll of scrap levels which have shown uncharacteristic softening over the last fortnight. Amidst despondency buyers are not showing any urgency despite low stocks. Discounts were barely evoking any response with buyers bidding for time in anticipation of lower levels.
The last reported deal at USD 392 per tonne, CNF HMS 1&2 (80:20) from US is climb down by USD 3 per tonne from previous week. European sources lost about USD 8-10 per tonne with similar grade being offered at USD 385-390 per tonne.
Scrap collectors in Eastern Europe and Black Sea have already revised offers since domestic demand is poor. A3 scrap deal was last concluded at USD 370 per tonne CNF Turkey.
Ironically despite winter shortage scrap price have reversed giving jitters to the suppliers and reflects the weak long product market despite some stability in billet levels.