Mills in the Far East and Turkey have bought a number of ex-US scrap cargos in the last week, but prices are still falling. Turkish mills abstained from purchasing US scrap for a couple weeks leading up to last week in anticipation that prices would drop further, especially if US domestic scrap prices came down. And when US domestic HMS I and shredded scrap prices settled early last week down $20-$30/lt, depending on grade and region, export prices did indeed fall further. Turkish mills bought at least eight cargos last week, according to one East Coast scrap dealer, with the most recent sold at approximately $430-$435/mt CFR, down from $440/mt CFR a week earlier, and down a more substantial $20/mt from our last report two weeks ago; however, a part of the drop is due to an $8-$10/mt decline in freight rates over the last couple weeks as well. Nonetheless, sources tell SteelOrbis that export scrap prices are likely close to hitting bottom, especially now that Turkish mills have picked up their buying activity.
Export scrap activity on the US West Coast has been quieter, although dealers have sold container cargos consistently to Taiwan in the last couple weeks for about $420/mt CFR for HMS I/II and $425/mt CFR for shredded scrap. Korea also purchased US container scrap in the last couple weeks for approximately $425/mt CFR. Bulk cargos have also been sold to Korea for $453/mt CFR for a mix of shredded and HMS I/II, down from around $461/mt CFR two weeks ago.