The US scrap export market continued its downward trend into late October with all major international markets remaining relatively quiet.
Turkish scrap buying activity out of US ports has been practically non-existent with minimal amounts of HMS I/II 80:20 material being booked at the level of $260/mt CFR as of the third week of October, representing a $25/mt decrease from the previous week. With the largest importer of ex-US scrap on the East Coast, Turkey, holding out for lower prices in the face of a weak finished product market, ex-US scrap offers to the region could see further price decreases.
Chinese domestic scrap rates continue to be quoted below international offer prices making it unlikely that international markets will see any buying activity from Asia in the near future. Current ex-US bulk HMS offer prices to China have been heard at the level of $280-$290/mt CFR, and from $230-$240/mt FOB US West Coast docks. In addition to the stagnant bulk activity to the Far East, container activities have also dramatically slowed with no substantial reported movement to the region.
According to industry sources the US domestic market is expected to remain slow through December, adding to the ailment that US exporters currently face. In the past, export yards could turn inland to the domestic market for some relief during export downturns; however, it has become increasingly difficult to locate buyers either domestically or internationally. "Everyone wants to talk to me now" one US exporter stated, referring to the willingness of US yards to entertain inquiries that would normally be reserved for tenured domestic clients.