Approaching December trading, sentiment has turned bullish in the US scrap market amid sharp increases recorded in export destinations, Kallanish notes.

Besides exports, tightening supply is also likely to impact pricing during the December buy-cycle. Most market participants think the eight consecutive months of price decline are coming to an end. However, the extent of the rebound is still being debated, while all US market participants believe the steel market situation will determine scrap values.

On the US West Coast, the Taiwanese market followed the recovery in Turkey last week. Besides Turkey, improved steel sales contributed to the Taiwanese recovery. US-origin containerised HMS 1&2 80:20 offers are seen standing around $330-335/t cfr Taiwan, although no deal has yet been heard done in this range.

On the East Coast, price rises in Turkey continued on Monday on a fresh deal concluded from the US. A western mill bought HMS 1&2 80:20 at $360/t and bonus and shredded at $380/t cfr Turkey, for December shipment. This is up from the previous premium HMS 1&2 80:20 deal at $351/t cfr last week.

Although US suppliers are targeting even higher prices in Turkey following the latest booking, the Turkish market is questioning the viability of this given steel sales are yet to recovery satisfactorily.