- US scrap suppliers hold firm on offers despite market slowdown
- Limited deep-sea trades reported from the US to Turkiye, Bangladesh
The US ferrous scrap export index increased by $3/tonne (t) w-o-w on Friday (20 December 2024).
However, after a sharp rise in FOB levels last week, the lacklustre deep-sea market this week dampened interest in US ferrous scrap, keeping export yard prices at lower levels.
Weakness in rebar and raw material prices have prompted Turkish mills to seek deep-sea scrap cargoes at lower levels this week, following earlier expectations that the market would remain relatively stable.
A US East Coast-based source stated that such steep declines are “unlikely,” adding that US material is currently being offered at around $355/t for Turkiye. However, the lack of global demand for scrap added to the uncertainty.
They also stated that prices could potentially weaken slightly due to exchange rate fluctuations.
FOB assessments (US East Coast, bulk)
- HMS (80:20) increased by $3/t w-o-w to $324/t.
- Shredded rose $3/t w-o-w to $344/t.
CFR assessments (bulk)
- HMS (80:20) was at $351/t CFR Turkiye, a rise of $4/t w-o-w.
- HMS (80:20) stood at $350/t CFR Vietnam, down $8/t w-o-w.
- HMS (80:20) was at $370/t CFR Chattogram, up by $4/t w-o-w.
Buyer side update
Turkiye: Turkish steel mills slowed down their deep-sea scrap purchase towards mid-week amid weak long steel demand. Sluggish rebar sales and falling prices are expected to keep mills away from fresh scrap bookings, sources said.
US suppliers held firm offers despite Turkish buyers stepping back from the market due to slower rebar sales and expectations of softer scrap prices.
Indicative tradable values for US and Baltic-origin HMS (80:20) ranged from $350-$355/t CFR, with most clustering around $350/t CFR.
Market activity was limited as sellers maintained firm offers while mills awaited lower prices. A Turkish mill source noted, “Nobody is going to pay $350/t CFR by now, but the market is unclear due to the holiday season.” Mills were also hesitant, expecting further price declines amid weak global demand.
Despite the pressure, some sellers maintained firm targets, with Baltic-origin HMS (80:20) offered at a minimum of $350/t CFR, while US-origin was quoted at $358-360/t CFR.
Bangladesh: Bangladeshi steelmakers limited purchases of costly ferrous scrap amid weak local demand, despite rising global steel prices. Mills continued bidding low, widening the bid-offer gap. Sellers, anticipating higher prices post-holidays in January, refrained from lowering offers.
Delayed LC processing further hampered deep-sea scrap bookings, leaving mills unable to secure bulk cargoes. Deep-sea HMS (80:20) offers from the US West Coast were at $365-370/t CFR Chittagong, with bids at $360-365/t.
As per market insiders, one vessel booked recently at $362-365/t from the US comprising 30,000-32,000/t on a CFR Chattogram basis.
Outlook: Major buyers of US ferrous scrap, such as Turkiye and Bangladesh, are expected to remain slow during the year-end holidays. In Bangladesh, limited procurement from end users and the lack of active projects are weighing on the market, while major mills are sitting on ample scrap and steel inventory. Recently, minimal trades for Turkiye were reported from Europe at slightly lower levels, which could keep US export prices range-bound in the near term.
Leave a Reply