US scrap export activity silent while domestic prices surge

Monday, 11 March 2013 03:09:02 (GMT+3)   |   San Diego

The last couple weeks have been unusually quiet in the US domestic scrap export market with Turkish mills abstaining from booking cargos. Just over two weeks ago, scrap export prices off the US East Coast to Turkey firmed by about $15/mt or so after declining in early February, with cargos sold at approximately $400-$405/mt CFR for HMS I/II and shredded scrap. Since those cargos were sold, however, Turkey has stepped away from the scrap market and has been unwilling to book at US offer prices--the most recent at around $415/mt CFR--deeming the prices to be too high. Sources tell SteelOrbis that Turkish mills are sitting on the sidelines right now and waiting to see whether or not the US domestic market's sudden March uptrend and higher export prices sustain.

As mentioned, US domestic scrap prices for March rose beyond many early expectations as winter storms allowed dealers to push prices to levels significantly above those in February. The Midwest--particularly Chicago/Detroit markets--was the strongest in March, with busheling prices up about $40/lt to about $410-$420/lt, and shredded and HMS I prices up about $30-$35/lt to $408-$415/lt and $370-$380/lt, respectively. In other areas of the country, the uptrend was less significant. On the East Coast, scrap is only trading at prices up $15/lt or so from February, with prices in the South up $20-$30/lt.

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