Export scrap activity has experienced little change in the last couple weeks, resulting in a drop in prices. About two or so weeks ago, as the downward trend for the US domestic scrap in April became increasingly apparent, Turkish mills limited purchases in anticipation of lower prices once April prices settled, creating a noticeable lull in the market. In the last two weeks, very few cargos have been sold as Turkish mills have looked to Europe when necessary to secure their scrap needs, but have been largely absent from the market overall. The most recent cargo of HMS I/II sold off the US East Coast to Turkey went for about $400-$403/mt CFR, but Turkish mills are aiming to drop those prices to $390-$395/mt CFR before making any major purchases. Two weeks ago, export offer stood at $405/mt CFR for HMS I/II and $410/mt CFR for shredded scrap.
Exporter sources tell SteelOrbis that although US domestic scrap prices fell about $17-$22/mt for April, scrap flow is not particularly strong, so whether or not Turkey is successful in taking down export prices by another $5-$10/mt will depend on the strength of demand. The export market on the US West Coast is also struggling with a lack of momentum with only sporadic orders, which has taken a toll on prices. Mills in China and Korea withheld orders in the last couple weeks until prices fell to more attractive levels. A bulk scrap cargo composed of HMS I/II and shredded scrap was sold about a week ago at $415/mt CFR China, the same level as a cargo sold to Korea, down about $10/mt from a bulk cargo sold to Korea about three weeks prior.