US export scrap prices on the East coast declined as Turkish mills purchased HMS I/II 80:20 at $240-240.5/mt CFR levels in late January and early February. For the week ended February 10, US export scrap prices to Turkey for the same grade climbed to $248/mt CFR. Lower scrap deals from the UK and Baltic regions, which pressured ex-US prices, were short lived as SteelOrbis has been informed of a recent ex-Baltic deal for HMS I/II 80:20 at $262/mt CFR.
Export scrap offers for HMS I/II 80:20 from the US East coast to Turkey are presently higher than $270-275/mt CFR. Given the usual $5/mt grade variance, shredded scrap for Turkish offers would then be at $275-280/mt CFR, which would also be more in equilibrium with the US East coast domestic pricing of shredded scrap.
Traders in India, who were not making substantial purchases of US scrap as US prices climbed in the last three months, have increased their bids for containerized shredded and are now being heard at $260-270/mt CFR Nhava. According to sources, offers for shredded containerized have moved up to $270-280/mt CFR Nhava.
On the West coast, six deals were reportedly closed in the last few days to Asian destinations. Details on pricing are still surfacing, but according to sources, some of these deals were the result of slightly dampened prices due to prevalent market uncertainty in various regions. For example, a Taiwanese steel producer concluded an ex-US deal for containerized HMS I/II 80:20 at $235-237/mt CFR early in the week. But as the week progressed and the Asian scrap and finished goods market gained strength with the return of China from their New Year holiday, US West coast exporters were heard with firm $245-250/mt CFR Taiwan offers.
Taiwanese steelmakers have also increased their bids through the week due to a stronger Asian scrap outlook at the end of the week. While bids were in the low $230's/mt CFR early in the week, they have been heard increasing to the high $230's/mt CFR by the end of the week.
Several market sources noted, "While markets moved up already within the week, further price increases on export scrap are likely on the way in this environment."