US: Ferrous scrap export index up modest $3/t w-o-w on stronger domestic demand
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The US ferrous scrap export index showed a modest w-o-w rise as overseas sales remained relatively slow compared to the previous week. East Coast prices saw an uptick of $3/t w-o-w.
Exporters remain unsure about the market's trajectory, though suppliers feel East Coast prices may stabilise at their current elevated levels.
Prices of imported HRC steels and plates into the US fell amid limited trading activity and uncertainty surrounding the upcoming presidential elections. Hot-rolled coil prices dropped to $660-680/t, and market participants are taking a cautious wait-and-see approach.
FOB price assessments:
- BigMint's assessment for HMS (80:20) bulk FOB East Coast increased by $3/t w-o-w to $359/t on Friday, up from $356/t a week ago.
- BigMint's assessment for shredded bulk FOB East Coast also increased by $3/t w-o-w to $379/t on Friday, up from $376/t a week ago.
CFR price assessments:
- Weekly assessment for US-origin HMS (80:20) bulk scrap stood at $388/t CFR, up by $10/t w-o-w.
- Weekly assessment for deep-sea bulk US cargoes of HMS (80:20) CFR Vietnam stood at $365/t, up by $10/t w-o-w.
- Weekly assessment for US-origin HMS (80:20) bulk prices were at $385/t CFR Chattogram, up $5/t from last week.
US domestic scrap market
US domestic ferrous scrap prices remained firm following a swift resolution to the three-day port worker strike and improved buying from domestic mills.
Industry sources say domestic scrap prices increased by $15-20/t w-o-w in Cleveland, the Ohio Valley, and the Southeast. However, weaker demand from buyers in Chicago and Detroit, along with maintenance outages, prevented the same from rising in those areas.
A trader said that, "Some Midwest steelmakers are currently not accepting the higher scrap prices for October. However, these increases could be delayed until November, as dealers may opt to hold onto their scrap for winter or sell the same to regions that will offer better prices or even export to the East Coast at higher price levels."
Buyers' market sentiments
US offers for HMS (80:20) were at $390-395/t CFR Turkiye, which the mills were heard to have resisted, with the highest bid reported at $385/t CFR towards the weekend.
A Turkish trader indicated that scrap suppliers were expecting their acceptable levels to touch at least $388/t CFR for US and Baltic-origin HMS (80:20).
Turkiye remains active for November shipments: Sources indicated that Turkiye has seen a total of 16-18 cargoes of imported bulk scrap already booked, reflecting strong demand. Major buyers ICDAS, Ekinciler and Kroman secured around 4-5 vessels from the US this week.
As Turkish mills gear up to meet domestic rebar demand, bookings are expected to increase throughout the month.
As per market participants, Turkish mills are raising their long steel export prices by around $15-20/t in response to higher costs of imported scrap and billets, despite facing ongoing trade challenges.
Bangladesh remains silent: Bangladesh's demand for US-origin imported bulk ferrous scrap continue to remain slow with minimal inquiries from buyers post-the port strike amid halts in government projects and a sluggish economy. A steel mill representative noted: "We are purchasing scrap gradually because our finished steel sales are low and we are operating at about 60% of our capacity and have enough stock for now. Thus, we will buy more next month."
US scrap exports increase in August
In August, US scrap exports reached about 1.59 mnt, up 28% from July and 13 % y-o-y. Turkiye was the largest buyer, importing around 578,000 t, an increase of 56% from July and 33% from last year. Other significant buyers included Bangladesh (296,000 t), Mexico (185,000 t), and Taiwan (109,000 t).
Outlook
US-origin ferrous scrap export prices are likely to remain firm on tight supply and improved domestic scrap usage from mills. Turkiye's continued inquiries for US-origin scrap are expected to support firm prices in the near term.
