Product
Shoots of light in US ferrous scrap export mart?
Written by Stephen Miller
May 15, 2025
The ferrous scrap export market has limped along the last several weeks. After bottoming out at $325 per metric ton (mt) CFR Turkey in late April for HMS 80/20, US-based exporters have seen the prices creep back up gradually into the $340s.
Shredded scrap has risen into the $360s. Of course, this rise only came after Turkey drained scrap availability from Northern Europe and the US dollar weakened against the euro.
So, now it looks like the Turkish buyers are balancing their procurement strategies for scrap between the continents.
European suppliers have tried to draw the line at $340, and this has increased the value of US material into the high $340s, despite weakness in the domestic market. The most recent US sale to Turkey has been done at $347/mt CFR for 80/20.
Speaking of weakness in the US market, shredded scrap has fallen $80-90 per gross ton (gt) over the last two months.
US East Coast
Exporters on the US East Coast had been supplying shredded scrap to domestic consumers rather than exporting their usual tonnages. With export prices somewhat improved and the large decline of US shredded prices, the amount of material allotted to the domestic market could lessen, as the price incentive has narrowed.
SMU spoke with a large export executive to get his take on the current state of affairs. He characterized the export activity as “slow.”
Turkey will continue to keep scrap flowing, but it is limited. He said there have been only inquiries from Egypt and India, but nothing from Mexico except an occasional small cargo out of the Gulf. That’s the problem off the US East Coast; Turkey is basically the only steady home.
On the freight front, bulk rates to Turkey have been stable in the low $20s, but June rates are likely to rise due to planned seasonal cargoes of other commodities. There have been concerns about future port fees hikes for Chinese built vessels and fleets which employ them.
However, the latest proposed regulations by the U.S. Trade Representative exclude ships arriving at US ports empty solely to pick up goods for export to foreign destinations.
Also, most of the vessels which carry bulk scrap, which are not Chinese-owned and operated, are under the size that could trigger the higher ports fees. These include Handymax and Supramax sized vessels.
US West Coast
On the US West Coast, scrap prices going to the Asian markets have been tepid. The Taiwanese price for HMS 80/20 via container has been around $285/mt CFR CY, although it seems to be inching up to into the high $280s.
Bulk scrap shipments have been mainly aimed at Bangladesh. Sales to this country are in the range of $350/t CFR for HMS and $355/mt for shredded. The freight is in the area of $68/mt.
Stephen Miller
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