Ferrous Scrap
Stirrings of life in scrap export market?
Written by Stephen Miller
December 12, 2024
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.
The suddenness of this move on the international front could further aggravate the January market in the US, which was already expected to move up. There is anticipation demand for scrap will be brisk in January after the mills resume normal operations after year-end adjustments.
On the West Coast, things are not so optimistic. The Taiwan container market is still trading well under $300/mt CFR CY. They have been able to buy Russian billets at prices slightly under $450/mt CFR. Needless to say, this is holding back increases in containerized material considering the conversion cost from scrap to rebar.
Stephen Miller
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