Obsolete scrap pinned by freight and weak export flows

There has been considerable activity in the export scrap market in the Mediterranean Basin over the last 10 days. Prices have inched up after recovering from a brief dip in September. Prices range from $340 to $347 per metric ton CFR Turkey for HMS 80/20 European/UK origin. Turkish buyers have been hitting Northern Europe very hard to supply their needed tons now that Asian billet prices are no longer workable.

On this side of the pond, several cargoes were bought from the US East and Gulf Coasts, and Canada. However, the prices paid did not surpass many of those booked in Europe, despite the difference in freight. The highest US-origin cargo traded at $347/mt CFR, but there were three buys on Friday, all at $350/mt CFR for 80/20.

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.