Miller on scrap: Different paths for US, foreign exports

After a brief decline in the price of scrap for the Turkish market, which peaked in December at approximately $424 per metric ton (mt) for HMS 80/20, the market has bottomed at $405/mt on cargoes from Europe. Since then, a European cargo was sold at $414. Scrap exporters from North America have not sold at these levels. The lowest is $419/mt CFR Turkey done a week ago. This reflected the strength in the US scrap market. On Thursday, another cargo from the US changed hands at the same price.

SMU reached out to an executive for a large scrap exporter. He believes the next round of purchases for the US will be no lower than that level. The executive said the rebar market has improved in Turkey, noting prices have increased into the low $600s. This should give Turkish mills enough of a cushion to be able to afford to buy at where the North American price has gone lately.

Stephen Miller

Stephen Miller started his career in the scrap metal industry in 1978 at Luria Brothers in Cleveland. Over the last 40-plus years, he has worked in all capacities in the trading business. He has had positions in both domestic and international scrap trading. In addition to scrap, Miller was at the forefront of the pig iron trade and established a pig iron distribution company under the name of Ferrosource, Inc. Most recently, Miller has concentrated on the scrap export market and regularly does consulting for several companies in the industry.