US scrap export market seeks footing

During H1’25, the US exported 1.72 million mt of ferrous scrap to Turkey, according to the Turkish Statistical Institute (TUIK). This was 18.8% less during the same period in 2024.

Overall, Turkey imported 9.38 million mt from all countries, a decrease of 5.8% in the January-June 2025 period vs. the same time frame in 2024.

The lack of scrap exports to Turkey by US-based scrap suppliers is adding to the domestic supply availability. Despite Turkey’s reduced purchasing, it is mainly a pricing decision. 

In the case of shredded scrap exports, the US price is significantly better than export prices offered by Turkey.

The most recent export price to Turkey on a delivered basis is $366/mt. That only nets US exporters on the East Coast about $330/mt FOB, once ocean freight and other logistical costs are considered. However, US mills are paying $374/mt delivered. The inland freight is about $30mt, which nets $344/mt FOB.

With HMS 80/20, it is a different story.

Most American steelmakers will not accept 80/20, with a few exceptions. They generally insist on a true #1 HMS without the inclusion of any #2 HMS.

So, there are limited domestic sale opportunities. Due to the residual alloys present in HMS, the grade has not been a priority for hot-rolled coil (HRC) producers using the EAF route, despite its high Fe yield.

Prices are averaging roughly $330/mt in the Central and Midwest districts. Turkey is paying $346/mt CFR. Using the same logistical costs, that leaves US shippers with over a $10/mt advantage exporting to Turkey (which they are doing).

A source in the export arena told SMU, “We need to export 12-15 bulks cargoes per month to put any pressure on domestic prices.”

Over the last six months, the US has fallen far short of this.

Exports from the US West Coast via container have not changed very much over the last several weeks. HMS prices are averaging $300/mt CFR to Taiwan, possibly inching up of late now that billet prices have increased. Regarding bulk, there has been increased activity from Vietnam and Indonesia, but less exports to South Asian consumers.