The US scrap export market has recently slowed as the international markets back off in the face of rising US domestic pricing.
As of early last week Turkish producers have been absent from the US scrap market as prices have risen above desirable levels. Recent offer prices for ex-US HMS I/II 80:20 to Turkey have been heard at up to as much as $315/mt CFR with most settling in at $295-$305/mt CFR. Some industry sources expect Turkish buying activity to pick up again in the coming weeks. However, some industry professionals are a bit less optimistic. Despite the current upswing in domestic pricing, Turkish producers are looking to stay under $300/mt CFR for as long as possible since they continue to see weak steel orders. Furthermore, freight rates from the US East Coast to Turkey have increased over the past few weeks.
Asian markets are operating along the same lines and are willing to sit out as US domestic prices climb. According to industry sources, Chinese producers have been heard making offers for US material. However, finalizing bookings to the region has been difficult as they are demanding prompt material and there are fluctuating offer prices. Current rates for HMS I/II 80:20 to China have been heard at $335/mt CFR bulk , while rates for the same product to other smaller Asian markets such as Vietnam and Taiwan have been heard at $290-$300/mt for containerized shipments. In addition, according to sources, the US East Coast is experiencing a container shortage, leading to an increase in container rates.
With the recent combination of US domestic buying and steep price increases since mid-November of $40+/mt and up to $80/mt in some US regions, international buyers are finding it increasingly difficult to secure tonnage. US mills are typically fairly quiet in the winter months. However, due to supply constraints and the possibility of further price increases, some domestic mills have opted to secure enough tons to carry their programs through the end of January, with the possibility of a sideways to slightly down price trend in February.