US scrap exports see increased activity from Turkish producers

As of late, Turkish producers have been actively importing ex-US scrap with at least four bookings over the previous two weeks. With the US scrap price trend moving up during the first few months of 2010, Turkish producers had no choice but to accept increasing US offer prices. In the East prices seemed to be solid, perhaps as a result of buying rush experienced by the Turkish mills.  But the rest of the country (including the West Coast) wasn't benefiting much from the export flurry and the prices outside the East Coast didn't move up much.  The current price of ex-US HMS I/II 80:20 is heard at $460-$465/mt CFR Turkey, representing no change from last week.

Far Eastern producers have had a fair share of the US scrap market as well with Vietnam, Taiwan, and Korea booking ex-US material. Current prices of ex-US HMS I/II 80:20 are heard at $450-$460/mt CFR container Vietnam, $425-$435/mt CFR container Taiwan, and $420-$430/mt CFR container Korea.  These numbers generally remained the same since last week. China, last year's top importer of US scrap, has yet to have any significant activity in the US.  US domestic scrap prices  have trended sideways this month, with the East Coast being the only US region to see an increase.  As of mid-May, many anticipated $30-$50 increase in US domestic prices in April. To some, stabilizing of scrap prices came as a relief.  Many felt that if the US scrap price trend seen over the first few months of the year continued,  this would have set the market up for a possible repeat of 2008, where the market overheated and cooled very quickly, leaving many scrap dealers with significant losses. 

The current trend for the domestic prices is sideways to slightly down.  However, scrap market demonstrated that it's capable of reversing trend quickly, as it did in early April.