US scrap export prices bounce back

Tuesday, 28 February 2012 02:09:38 (GMT+3)   |  

US scrap export prices have started to recover over the last couple weeks. After ex-US East Coast bulk scrap cargos were sold to Turkey in mid-February at prices as much as $5/mt under the $430-$435/mt CFR range reported two weeks ago, cargos were sold from the East Coast to Turkey late last week at about $440-$450/mt CFR for a mix of HMS I, shredded, and some P&S scrap--reflecting an increase of about $15-$20/mt since early February. Turkish mills had been focusing on purchasing less expensive scrap from northern Europe over the past month, but with harsh weather and limited availability in the CIS, Turkish mills have now been forced to turn to the US once again to fulfill their scrap needs.

Meanwhile, on the US West Coast, buying activity from China is still quiet and sources tell SteelOrbis that Chinese mills have been focusing on buying locally-produced scrap as of late. Taiwanese mills haven't been buying much US scrap over the past couple weeks, either, because of soft long finished steel prices and demand in Taiwan. So, the approximately $10-$15/mt increase in container scrap prices to Taiwan over the last two weeks to the current $430-$435/mt CFR range is more of a "natural bounce back" to prices hitting bottom rather than any reflection of increased demand, according to scrap dealer sources. However, because Taiwanese scrap stocks are likely beginning to run low, ex-US West Coast export scrap prices to Taiwan could continue to firm over the next couple weeks.


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