The US scrap export market has slowed in recent weeks with Turkish and Far Eastern producers shying away from further price increases.
Prices for ex-US scrap in the Turkish market have seen substantial increases over the past few weeks, with current offer prices at $515-$525/mt CFR. Sources tell SteelOrbis that the current hold-out position by Turkish producers is partially based on assumptions of softer prices in the near future. However, the recent bad weather on the US East Coast has further tightened supply. If there is any softening in the US export market to Turkey, tight supply in the US market will limit pricing slip.
Far Eastern producers have also stepped out of the US market due to high offer prices. Current offer prices for ex-US material to China have been reported at $525-$530/mt CFR, although there have been reports of recent bookings at lower numbers. Likewise, ex-US containerized material is currently being offered at $485-$495/mt CFR Taiwan, with no bookings reported at this level. Industry insiders expect that export bookings to Far Eastern producers will continue to be slow through February, as producers from the region have begun to acquire material from sources other than the US.
US domestic prices are expected to see another increase of $20-$30/lt in February, as domestic mill order books are strong with utilization rates in the mid-70s. There are also reports of a rail car shortage in the US Midwest, with several rail companies rejecting any new bookings or additions to current orders.