US scrap exports have slowed to a crawl just after a little over a week since the Turkish market exploded with purchasing activity in the international scrap market.
Market sources indicate that as a result of the perception of Turkish mills' adequate scrap availability, Turkish producers have positioned themselves to hold out in an effort to put downward pressure on international pricing. Recent offers for ex-US scrap were heard at $379/mt CFR for a mixed cargo of HMS I/II 80:20 and shredded.
Bulk freight rates on the US East Coast have also been reported to be dropping by $6-$8/lt settling in at $25-$27/lt. Canceled back hauls are the reported reasons behind the recent drop in US East Coast freight rates. US West Coast container freight rates are heard to be standing firm with no major movements reported.
Suppliers on the US West Coast are having an equally hard time completing transactions to Far Eastern producers. Offers for ex-US material to China has been heard at $390-$400/mt CFR bulk and $365-$375/mt CFR for containerized HMS I/II 80:20 to Taiwan, representing a neutral trend to China and a slight increase to Taiwan , however, no transactions have been heard at this level. It is believed that US suppliers are maintaining a firm position in anticipation of higher November export pricing.
The US domestic scrap market is anticipated to trend sideways to slightly up in November depending on product and region, and if/how strong the US domestic producers and Turkish producers buy-some optimistic insiders think Turkish mills will come back to buy and push the domestic scrap prices up to $10 to $15/lt next month.
One source indicated that the US market could see two to three US mills impact the US scrap prices with a short term price spike as domestic mills are forced to come back at higher prices after choosing to sit out.