US scrap exports to all of the major international import markets have seen a rise in prices over the last few weeks.
US West Coast and Gulf Coast export scrap suppliers alike have been seeing healthy demand from Far Eastern ports, with accepted prices for export scrap cargoes approaching and sometimes exceeding $300/mt CFR. Both containerized and bulk scrap shipments have been booked to most of the major Far Eastern ports in the last couple of weeks, exception of South Korea and Taiwan, and ex-US containers to China. South Korean and Taiwanese mills are sitting out as the current going price level is not palatable to them and they are currently comfortable functioning at current inventory levels. Meanwhile, China has recently shifted its container scrap purchasing to Japanese material as rates are more attractive in the region.
Ex-US to Far Eastern ports are trending upwards with recent transaction prices for HMS I/II 80:20/shredded mix at $320/mt CFR bulk to Vietnam and $285-$290/mt CFR containers to Far Eastern ports, with freight at $40-$50/mt to China out of Nola. It is expected that prices to the region will undergo moderate increases over the next few weeks.
Similarly, East Coast suppliers have raised their quoted prices as well, given the expectations of a spike in US domestic prices in July. US mills' inventories are currently low, international scrap supply is also low, while there is moderate demand from other international markets. The Turkish mills have this week taken a break from the scrap market (after their intensive purchase activity in recent weeks) mostly due to lack of rebar demand. Besides, the current levels of scrap and rebar prices have meant that Turkish steelmakers cannot afford to purchase scrap at the present time. Current prices to the region sit at $280-290/mt CFR for HMS I/II 80:20 up from $270/mt CFR during the fourth week of June. Freight rates out of the East Coast to Turkey are currently at $30 and $30-$35/mt out of Nola.