The US export scrap market so far in January has been strong, with Turkey and Taiwan picking up scrap cargos at higher prices than in late last month. Turkish scrap bookings have been plentiful in the last two weeks, but particularly this past week, as mills stock up US and European scrap for winter steel production. Exporters told SteelOrbis that Turkish mills essentially "tapped out" Europe for less expensive scrap and have turned to the US more willing to pay higher prices. Sources anticipate the scrap export market off the US East Coast to remain strong in the coming weeks and prices have an opportunity to increase further. The most recent scrap cargos were sold for $407/mt CFR for HMS I/II and $412/mt CFR for shredded scrap, up about $10/mt from late December sales of $395-$400/mt CFR.
The scrap export market on the US West Coast has also strengthened so far in January, as surging iron ore prices in China have made Taiwanese mills to be more willing to pay higher prices for US scrap. Increased iron ore costs have also reignited China's interest in US scrap, with US bulk scrap offers to China currently standing at around $430/mt CFR. Ex-US container scrap cargos sold to Taiwan this past week were at prices between $390-$400/mt CFR for HMS I/II, up significantly from sales concluded at about $370/mt CFR just before the New Year holiday.