The US domestic scrap market settled this week up $30-51/mt, depending on grade and region, compared to the prices settled in early November delivered to mill. The price increase exceeded expectations.
On the East coast, prices at the docks for exporters increased substantially throughout November into December as they sought to purchase inventories to fulfill previously sold scrap commitments. The competition with exporters for tight scrap inventories motivated domestic mills to increase prices to secure scrap.
Given the domestic dynamics, US exporters have not been heard completing deals to Turkey since the second week of November. The offer prices from US exporters rose to $280/mt CFR Turkey for HMS I/II 80:20 since mid-November, but Turkish mills have indicated soft interest at closer to $270/mt CFR. Two recent Turkish deals heard in early December were sourced from Europe at $270-271/mt average prices for combinations of loads including HMS I/II 75:25.
US exporters expect for Turkish mills to return to the deep-sea scrap market for January cargoes next week prior to the January buy as US domestic prices are expected to increase again or at the minimum hold stable. A source close to SteelOrbis notes, “We hear export demand for some finished steel products from Turkey is slightly weak along with some uncertainty in their domestic market, but they need to continue production. We are in tight supply so a few deals will be sufficient.”
On the West coast, US origin scrap to Taiwan is presently offered at $250-255/mt CFR. Prices moved up $10/mt over the week from December 2 reported offers for HMS I/II 80:20 at $240-245/mt CFR Taiwan.