Approaching May trading, US scrap market sentiment has worsened following the sharp fall recorded in Turkish prices last week.

Although market participants’ expectations for the direction of prime grades are diverging, all sources expect shredded and cut grades to fall during May trading.

A scrap supplier tells Kallanish: “The general consensus is that obsolete grades will fall by $30-70/gross ton, depending on the region. Some expect prime grades to fall as well. However, I believe they will remain firm.”

The sharp fall in Turkey last week has seen bearish sentiment deteriorate further. Turkey, which bought US-origin HMS 1&2 80:20 at $428.5-430/tonne cfr Turkey the previous week, booked the same grade at $416/t cfr last week. In the EU and Baltic-origin bookings, prices for the same grade stood at $415/t cfr levels, on the other hand.

Amid unfavourable conditions in steel sales and falling steel prices, Turkish mills are decreasing their price targets for scrap. One mill expects premium HMS 1&2 80:20 prices to fall into the $400s and does not foresee a demand recovery at least until after the presidential elections on 14 May.

For US West Coast exporters, sentiment in Taiwan is not any stronger. A local Taiwanese mill cut scrap purchasing prices by $10/t this week, while US-origin containerised HMS 1&2 80:20 offers declined to $385/t cfr Taiwan from $390/t cfr a week earlier.