Quotations for ex-US scrap have risen over the past weeks as US domestic rates are anticipated to trend up again in January 2011. With the lure of higher prices in January, US domestic suppliers continue to hold material, and with supply already running tight due to seasonal weather, international markets are feeling the pricing pressure.
Current prices for ex-US scrap to Turkey have been heard upwards of $450/mt CFR, a $25/mt increase over prices reported early last week. US offers to Turkey remain slow due to a strong US domestic position as a result of increased demand and tight supply. Market sources tell SteelOrbis, as a result of the US domestic strength, Turkish producers are looking to other international markets such as Russia, to fill their short-term scrap needs.
US scrap prices to Far Eastern producers have also seen increases over the past weeks due to the previously mentioned strength in the US domestic prices. Current rates for ex-US material is reported at $400-$405/mt CFR HMS I/II 80:20 Taiwan, a $5-$10/mt increase over last week. Activity to China has remained slow as inventory levels are believed to be at adequate levels. Prices for ex-US scrap to China were reported at $430/mt CFR as of last week.
As mentioned earlier, US domestic prices are expected to increase significantly in January market sources tell SteelOrbis.