Ex-US scrap prices to Turkey and the Far East have decreased by approximately $20 to $30/mt in the past week.
With the high scrap prices in early January, Turkish producers have been out of the US export scrap market until last week, when Turkish mills returned to purchase scrap from the US at $493 to $500/mt CFR, representing an average decrease of approximately $25/mt from two weeks ago. Sources tell SteelOrbis that the price decrease hasn't ended yet, and prices will continue to go down further in the month of February. Bulk freight from East Coast to Turkey has also decreased by $5 to $28.
Ex-US scrap prices to the Far East have come down as well. Last transaction ex-US containerized material was being offered at $450/mt CFR Taiwan. However, this price level is not being offered in the market anymore. As the Chinese New Year is coming later this week, scrap buyers are holding off until after the holidays. Therefore, US scrap export activity to the Far East market is expected to be slow in these two weeks. Container freight to the Far East from the West Coast is between $23 and $27 per ton.
It is also heard that Argentina has bought some scrap tonnages from the US in the past two months.
In the US domestic market, the anticipation of a slightly up to sideways scrap move in February has shifted. US domestic scrap prices are now expected to go down $20 to $30/lt in February, depending on grade and region, due to the reducing export scrap prices.