US export scrap market quiets

In the first week of January, Turkish mills were on a buying frenzy, purchasing scrap cargoes from a number of regions. Turkey bought ex-UK, ex-continental Europe and ex-Black Sea scrap, but not as much from the US. Export offer prices for both HMS and shredded scrap from the US East Coast to Turkey have been higher than from other regions, so Turkish mills have been "fishing for the best deal" from different countries, according to an East Coast scrap dealer. The latest ex-US East Coast scrap cargoes to Turkey have been booked at prices little changed since late December. Ex-US export HMS I&II prices to Turkey are approximately $465/mt CFR--an increase of about $5/mt--and ex-US export shredded scrap prices to Turkey are in the range of $468-$472/mt CFR--also up approximately $5/mt.

Meanwhile, export scrap activity from the US West Coast has been slow. With the Chinese New Year approaching, mills in the Far East have refrained from making many scrap buys in the last couple weeks. A significant amount of scrap has been offered from the US in recent weeks, and exporters had been trying to raise prices. However, because activity was so slow, prices fell back down to previously reported levels and the latest ex-US West Coast container prices to Taiwan were concluded at $450-$455/mt CFR for a mix of HMS and shredded scrap. While export scrap activity to the Far East is expected to remain quiet through month's end, when Taiwanese and Chinese mills return to the market next month, both purchasing activity and prices are likely to increase.