Both the US East coast and West coast scrap export markets are expected to continue their upward price trend in the coming weeks, barring any surprises.
On the East coast, no known ex-US scrap deals to Turkey have been heard since August 11 when SteelOrbis reported an ex-US deal for HMS I/II 80:20 scrap at $353/mt CFR, shredded scrap at $358/mt CFR and bonus grade scrap at $363/mt CFR for mid-October shipment. According to an East coast trader, the latest ex-Canada deal this week for HMS I/II at $357.5/mt CFR Turkey, increasing global raw material prices, strong domestic demand, upward September scrap pricing outlook, and “global demand despite interim market uncertainty may well point toward some feasibility of higher Turkish import prices prior to September.”
Sources on the West coast report ex-US scrap deals to Taiwan have increased again during the week ended August 18. A large buyer was said to have purchased containerized HMS I/II 80:20 at $295/mt CFR Taiwan while several other smaller containerized HMS I/II 80:20 transactions were heard slightly below the $300/mt CFR Taiwan level. Offers for HMS I/II 80:20 are now heard at $305-310/mt CFR Taiwan.
On August 11, SteelOrbis reported large deals at $285-286/mt CFR Taiwan basis with smaller volume buys with prices at $290-294/mt CFR Taiwan. Offers of containerized HMS I/II 80:20 scrap were reported at $295-305/mt CFR Taiwan. Compared to a week ago, the deal price on large buys increased by $9-10/mt and deal prices on smaller buys increased $3-8/mt. Offers have increased $10/mt from the bottom of the previously reported range and $5/mt from the top of the previously reported range.
A separate source noted that increasing US export scrap prices to Asia are also supported by strong Japanese H2 scrap export prices as they reflect the scrap alternative sources in the short-sea regions in Asia. Additionally, in an unusual trend, Turkish mills purchased scrap from the West coast in early August, thereby, supporting scrap pricing and demand on the West coast.