SMU scrap sources began advising mill deals for the month of October were getting done at prices which were sideways on some products to down $5-$15.

The Midwest is being reporting cut grades as “flat to down $5” while shred is being reported as down $10 per ton and prime grades are off $10-$15 per long ton compared to the September numbers. We are hearing this from multiple sources.

East coast numbers are being reported as most deals being done at sideways numbers with the exception of prime grades (such as busheling) which is down $10 per long ton.

East coast dealers are reporting exports at a standstill as Turkish mills are buying from Europe. However, one of our east coast sources told SMU they do not believe there is enough scrap in Europe to supply all of the Turkish mill needs. This remains to be seen.

There are imports of prime grades coming into the U.S. at $500-$505 per metric ton.

Buying prices have been lowered by the exporting scrap companies and in-flows are reported to be “not heavy.”

Here is what one of our sources had to say to us late this afternoon (then read the article below):

“I know Asia is significantly weaker. And there is a Metal Bulletin article on the AMM website that makes it sound like brokers are upset because US east coast exporters are being unreasonable in their asking prices.

The market is what it is, and the reality is that Sims, EMR, and Schnitzer have probably the best scrap market intelligence of any companies in the world (whether they use it correctly is another story). But they obviously think that there is not enough European scrap to satisfy the Turks and the word is Turkish scrap inventories are pretty low. Time will tell but US mills did not pay what they paid in October because they are nice guys, and Turkish mills will pay what they need to pay to buy scrap when they need it. My understanding is that Turkish rebar is today worth about $640 ex-works, so $640 - $470 = $160 metal spread. It’s not great but not so terrible either.”