US: Ferrous scrap export index rises $8/t w-o-w as Turkiye remains active in deep-sea market
...
- Improved sentiments in China support global market
- Turkish prices up $7/t amid rebound in rebar demand
The US ferrous scrap export index increased by $8/tonne (t) w-o-w on Friday (13 December 2024), supported by improved sentiment following China's plans to ease its monetary policy and implement proactive fiscal measures in 2025. Rising steel billet prices also supported scrap tags.
At the start of the week, a surplus availability of scrap and reduced operating rates at US mini-mills, driven by sluggish demand, led to a price decline. Eventually, export offers rose as Turkiye actively procured material in the deep-sea market. Improved sentiments in China also boosted the mood in the global market.
Meanwhile, US domestic ferrous scrap prices experienced their first major drop since the 2010s, leading to export tags for HMS (80:20) falling to around $340-350/t CFR Turkiye from $365-370/t a month earlier.
FOB assessments (US East Coast, bulk)
- HMS (80:20) increased by $8/t w-o-w to $321/t.
- Shredded rose $8/t w-o-w to $341/t.
CFR assessments (bulk)
- HMS (80:20) was at $347/t CFR Turkiye, a rise of $9/t w-o-w.
- HMS (80:20) stood at $358/t CFR Vietnam, down $2/t w-o-w.
- HMS (80:20) was at $366/t CFR Chattogram, down $4/t w-o-w.
Buyer-side market
Turkiye: Turkish prices for US-origin material rebounded by $7/t w-o-w after hitting a two-year low, to maintain a range of $340-345/t CFR. This was due to improved steel demand in both the domestic and export markets.
Prices also rebounded due to the end of Syria's civil war, a recovery in the Chinese steel industry, and the Moselle River accident, which helped halt the downturn in scrap markets and prevented a further fall in Turkish import prices. This recovery could support the scrap industry across Europe.
Sources speculate that mills may have been securing scrap ahead of China's Central Economic Work Conference, expecting it to reveal economic growth and stimulus plans that could benefit the global market. Indicative tradable values for US/Baltic-origin stood at $340-343/t CFR, with sellers' offers at $350-352/t CFR and buyers' bids below $340/t.
Bangladesh: Demand for US-origin scrap in Bangladesh was weak, with minimal deals and low buying interest. Prices of US-sourced HMS (80:20) softened by $4/t w-o-w to $366/t. Despite rebar price reductions in Bangladesh, scrap inquiries remained sluggish. US HMS (80:20) was offered at $365-370/t.
A Chattogram-based importer mentioned that workable prices of US-origin HMS were at around $360/t, with offers under pressure due to uncertainties in freight and currency fluctuations. While a recent Turkish deal lifted prices slightly, demand for US scrap remains cautious.
Outlook
China's overproduction and subsidies are pressuring global scrap markets, including Turkiye and the US. US rebar prices are likely to remain stable, with scrap export tags firming as European suppliers push levels above $345/t to Turkiye. This could keep US export prices over $350/t in the near term.
