Offer prices of ex-US scrap continue to rise as supply remains tight and as US suppliers continue to hold material for an anticipated January increase in US domestic prices.
Turkish producers have remained moderately active in the US market with recent negotiations at $475/mt CFR for HMS I/II 90:10. Prices are expected to continue to rise as the winter months cut into supply flows and as scrap prices in international markets continue their upward trend. Increasing finished and scrap prices, along with tight supply in the Turkish market, continue to impact the buying activity in the region.
Along the same line, import prices in the Far East have seen continual increases over the past few weeks. Prices for ex-US containerized HMS I/II 80:20 to Taiwan are reportedly at $440-$450/mt CFR, this represents an increase of $30-$40/mt from early this month. Prices are expected to continue to rise in the coming weeks.
The US domestic scrap market is expected to see another price increase of $30-$60/lt come January. The strength of the US domestic increase will be impacted by US export activity according to industry sources. Tight winter supply remains the driving variable behind the recent US scrap increases, in addition to low US inventory levels. According to industry sources, the US domestic scrap trend in February 2011 may be down due to increased December buying activity in 2010, thus making the post-December inventory restocking less drastic.
US domestic and international scrap purchasing is expected to slow over the next week as the new year approaches.