US scrap exports remain steady

Monday, 22 November 2010 02:34:27 (GMT+3)   |  
       

The US scrap export market continued its steady trend over the past week with several transactions reported off US ports.

Turkish producers have remained active in the US scrap market as of late, although, the transaction frequency has slowed over the past week. The latest transaction prices for ex-US HMS I/II 80:20 to Turkey were reported at $395-$405/mt CFR, representing no change over previous rates. Transactions are expected to continue to slow as the recent purchasing flurry by Turkish producers has brought inventory levels to operable levels, therefore leveraging negotiations. Current freight rates from the US East Coast are reported at $27-$28 bulk.

Far Eastern mills have completed a few transactions of ex-US material including bookings by Chinese producers at the rate of $415-$420/mt CFR, representing no change over from early last week. At the same time, bookings of ex-US containerized HMS I/II 80:20  to Taiwan were transacted at the rate of $395-$400/mt CFR, but the offer level has since increased approximately $5/mt to $400-$405/mt CFR. Current 40ft container freight rates have been reported at $28-$30 of the US West Coast. The current increased offer levels by US suppliers to such destinations as Taiwan has not currently been accepted. Taiwanese producers are citing the inability to pass along any increases in scrap prices to their finished market, causing a stalemate in negotiations.

The US domestic scrap market is expected to maintain its slow pace as the end of the calendar year approaches.  This is leading a majority of US scrap suppliers to hold material in anticipation of a January bump in domestic demand. "Those (US scrap suppliers) that are in a financial position to hold material until next year are doing just that, and they represent the majority" a source tells SteelOrbis.  However, the material hoarding by US scrap suppliers is creating headaches for US exporters trying to acquire material to fill orders as well as some US domestic producers running low on inventory.


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