Exporters on the US East Coast (USEC) did not raise prices for scrap inflows for another week despite export prices continuing to rise. The price of US-origin HMS I/II 80:20 rose by $8/mt from last week to $410/mt CFR Turkey, and while the upgrade is generous, the cost of bulk freight from USEC has risen by $3/mt to $46-49/mt CFR Turkey. The rise in both indexes has not been in step, yet exporters still cite the increase in bulk ocean freight and the potential for further rises in the coming weeks as reasons not to increase prices to docks.
The price of HMS I to New York and Philadelphia docks continues at $280-290/gt delivered export yard. There were reports last week of shredder feed being sold at higher levels in some instances, leaving the range of deals for the grade at $250-275/gt delivered export yard.
Some participants said they had started to hear of some exporters increasing their prices for cuts to their docks by $10/gt, but these rumors were unverified, with others saying that the sellers were trying to get traction on increases in light of higher export prices. The truth is that the export market fundamentals are waning. In Turkey, as reported by SteelOrbis, local rebar prices have begun to fall as the Turkish lira depreciates against the dollar and demand remains tepid. Domestic Turkish rebar prices fell by $5/mt this week.
Everything points to higher ocean freight costs and the expectation of further increases, as higher global oil and energy prices are propping up temporary export market bullishness. There is the possibility that possible $10/gt increases in the US domestic ferrous scrap market in May could spur prices to docks if exporters wish to secure volumes.
Prices to Boston docks also were unchanged at $255-265/gt delivered export yard for HMS I, and shredder feed at $155-165/gt delivered.
