The US export scrap market is trending down in the latter part of September on recent deals. The latest September ex-US bulk scrap deals have trended down from the earlier ex-US September deal that peaked at $355/mt CFR for HMS I/II 80:20. The latest ex-Canada scrap deal for a cargo consisting of HMS I/II 90:10, shredded and bonus grade scrap at the average price of $325/mt CFR is placing concrete pressure on the US export market. An East coast scrap dealer stated, “Scrap pricing for export has started to fall $20-25/mt based on the last cargoes sold.”
This downward trend on bulk scrap deals is also influencing the US export container market. According to an East coast exporter, “The container market is down $15/mt and receiving resistance from buyers.” Given the expectations that the US domestic scrap buy-cycle will trend soft in October, one trader speculated that buyers will come back after the market settles with expectations of further discounts. The exporter added, “Once the domestic market settles down some, buyers will probably come back to a further $10/mt drop that may result in an overall October decline of $25/mt down from September export prices to places such as Pakistan.”