Export scrap activity from both the US East and West coasts has been slow the last couple weeks, leading to further drops in prices. Turkey has not made much scrap purchases from the US, as Turkish mills continue to opt for less expensive European scrap, which remains attractive as the euro remains weak. India has also been buying very little scrap from the US; the latest offer from the US to India was for shredded scrap at $437/mt CFR. The latest offers from the UK to Turkey were approximately $400-$410/mt CFR, down about $15-$25/mt in the last few weeks. Ex-US scrap prices are still weakening, and are expected to drop further if activity doesn't pick up soon.
On the US West Coast, ongoing weakness in the Far East finished steel market continues to dampen export scrap prices from the US to Taiwan. Current HMS I/II container cargos to Taiwan are being offered at around $410-$420/mt CFR, compared to $430/mt CFR two weeks ago and appear to still have more room to decline. The currently weak scrap export market in the US is anticipated to have a major effect on US domestic scrap prices in June, which some industry insiders anticipate could fall about $20-$30/lt on shredded and HMS I scrap, and $30/lt to as much as $40/lt on busheling scrap.