US export scrap prices rise, but activity still moderate

Monday, 05 December 2011 02:05:58 (GMT+3)   |  

Ex-US scrap bookings from the East Coast to Turkey have been a bit more active in the last couple weeks after a quiet November, as sources indicate that scrap inventories at Turkish mills are light, since mills have already used up much of the cheaper European scrap they bought in October and early November. As a result, export scrap prices from the US East Coast to Turkey are up to about $420-$425/mt CFR on HMS I from $415/mt CFR two weeks ago, while export shredded scrap prices from the US to Turkey are now approximately $425-$430/mt CFR, also reflecting an increase of approximately $5-$10/mt from mid-November.

Similarly, dealers on the US West Coast have increased their export scrap prices to Taiwan, but by a more substantial $20-$25/mt. Current ex-West Coast container prices are $420-$425/mt CFR for a mix of HMS I and shredded scrap. But sources tell SteelOrbis that while exporters have been able to raise prices there isn't too much buying activity to speak of because the exporters are waiting to see if they can raise prices even further before selling off their stocks. Meanwhile, the steel market in the Far East is still weak so while tonnages have been sold, they have been spotty, and there really isn't any major upward momentum, just a day-to-day price push.

Although the US export scrap market isn't exactly robust at the moment, the rising prices are already beginning to translate into an uptick in US domestic HMS I and shredded scrap prices as well. Lower supply on account of inclement weather conditions has also minimized HMS I and shredded scrap availability. An increase in domestic busheling prices for December also appears to be on the horizon, and while official scrap prices for December will come out at the end of the week, early predictions indicate that an increase of $15-$25/lt isn't out of the question.

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