Stirrings of life in scrap export market?

Last week, the export community in the Atlantic Basin was licking its wounds over a Northern European sale at a two-year low of $325 per gross ton (gt) for HMS 80/20 to Turkey. Export terminals along the US East Coast had dropped prices on remote HMS from low  $300s/gt in October/November to $270/gt in December. The outlook appeared to be relatively grim for a near-term recovery. That has changed in dramatic fashion.

There has been a surge in orders and price for Turkish-produced rebar. This has increased demand for scrap imports and has brought in the need for scrap from North America. In a surprise purchase this week, a US-based exporter concluded a mixed cargo at an equivalent HMS 80/20 price of $345 per metric ton (mt) CFR, which was a $20/mt jump. Since then, two European cargoes changed hands at $341 and $344 per mt, respectively. Offers from the US are reportedly at $355/mt and are destined to rise as Turkish buyers continue to fill in their January needs.