- Domestic scrap demand in US remains firm
- Increased freight rates support higher US offers
US ferrous scrap export offers rose by $6/tonne (t) w-o-w, driven by sellers’ expectations on strengthening domestic demand, which pushed fresh offers higher for Turkiye and other Asian markets.
Despite sluggish Turkish rebar sales, mills remained engaged in restocking, acknowledging the firm stance of US suppliers, who negotiated at elevated price levels.
While US-origin scrap commands higher offers, European material remains available below $360/t CFR, creating a price gap that limits aggressive upward movement. The divergence in supplier expectations keeps negotiations fluid, with mills balancing their scrap procurement strategies with some European material.
Current US East Coast offers for HMS 80:20 were heard at $365-370/t CFR Turkiye, and US West Coast offers to Bangladesh and Vietnam stood at $365-366/t and $355-358/t CFR Chattogram and CFR Hai Phong, respectively.
FOB assessments (US East Coast, bulk)
- Shredded up by $6/t w-o-w to $362/t.
- HMS 80:20 increased by $6/t w-o-w to $342/t.
CFR assessments (bulk)
- HMS 80:20 was at $364/t CFR Turkiye, up by $6/t w-o-w.
- HMS 80:20 stood at $352/t CFR Vietnam, up by $2/t w-o-w.
- HMS 80:20 was at $363/t CFR Chattogram, stable w-o-w.
Market updates on key importers
Turkiye:Turkish imported scrap prices rose from the US as mills continued restocking even though sluggish rebar sales continue. Indicative workable offers for US-origin bulk HMS 80:20 material was heard between $363-$366/t CFR, with US recyclers targeting $370/t CFR. Rising freight costs from the US East Coast to Turkiye, climbing to $31-32/t from $30/t last week, further strengthened US exporters’ position in terms of raising their offers.
Sellers expect further strength in US domestic scrap, while Turkish mills assess demand cautiously. The Turkish scrap-to-rebar spread narrowed to $195-200/t, with the rebar export price standing at $560-565/t FOB amid sluggish demand from end-users.
Bangladesh: US HMS 80:20 bulk prices held steady at $363/t CFR, with offers ranging between $366-370/t. While a few buyers are active, most continue to struggle with LC issuance, though conditions have slightly improved compared to the previous months. Despite this, bulk inquiries remain limited.
A Chattogram-based mill official said,“Demand remains scarce, with major projects either significantly slowing down or completely halted. New projects are not coming in, and overall demand is nearly half of what we saw in February.”
Vietnam: US-origin ferrous scrap demand by Vietnamese buyers continues to remain slow, although there was a $2-4/t increase in prices last week.
Offers for US-origin deep-sea cargoes climbed up to $360-364/t CFR. However, it was observed by market participants that construction activity remains sluggish post-holidays, impacted by unfavourable weather.
Outlook
Market participants expect further upward pressure on scrap prices, with early March trends in Turkish rebar sales and US domestic scrap movements shaping the outlook. Turkish mills are likely to continue restocking for March-April shipments, but demand for US-origin scrap may remain limited from Asian buyers unless prices become more competitive.
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