US scrap export market prices have increased through June due to support from the upward shift in the global steel market, direct cargoes sold to Turkey, and strong demand from several emerging markets.
Through the last several weeks, China’s domestic steel market has rebounded to support increases in scrap, iron ore, and coking coal prices. This in turn has fueled increases in finished goods both in the domestic and export markets.
Ex-US scrap prices to Turkey increased by $13/mt from a mid-June HMS I/II 80:20 price of $277/mt CFR to several deals this week at $290/mt CFR. According to sources, purchases from Bangladesh, India, Taiwan and even Peru have provided support to the increases in scrap prices from the US.
While sources are not in agreement as to the exact number of cargoes, Bangladesh has been rumored to have purchased 4-7 bulk scrap cargoes from the West coast. According to sources, HMS I/II 80:20 was traded at $295/mt CFR while shredded was traded at $300-305/mt CFR, both Bangladesh port. Scrap deals on containerized HMS I/II 80:20 to Taiwan have been reported at $251-253/mt CFR. Details for the Peru cargo are presently unknown.
Shredded scrap containers sold to India have been heard at $300-305/mt CFR Indian port from the East coast. Indian buyers are expected to return to the US market for larger scrap purchases after the new general sales tax (GST) regime is implemented July 1. However, India may not be the boom expected until later in the summer due to seasonality, competitive domestic prices on alternative raw materials, and potential delays from yet unforeseen GST effects. According to sources, to minimize difficulties due to IT infrastructure limitations or procedures, the GST council has deferred the filing of some transactions in July and August until September.
With ex-US scrap prices increasing by $10/mt at the East coast docks along with expectations for continued strength domestically and in the global markets, sources inform SteelOrbis of expectations of US scrap export prices at $300/mt CFR Turkey on HMS I/II 80:20 soon.