US: Ferrous scrap export prices fall $6/t w-o-w amid rising freight costs

• Market believes further price drops may risk curbing supply
• Competitive EU cargoes limit Turkish demand for US scrap

US ferrous scrap export prices fell by $6/tonne (t) w-o-w, with trades slipping below $338-340/t CFR as Turkish mills remained cautious amid rising freight costs and weak domestic demand.

September transactions were $12-13/t lower than August, while freights climbed up to $45/t from $42/t, further squeezing FOB margins. The continued pressure also weighed on dockside buying, with exporters cutting collection rates in line with weaker deep-sea cargo levels.

Market participants believe prices may be close to a floor, as any further decline risks curbing inflows. With winter approaching, collectors are expected to hold back tonnage until a firmer pricing environment emerges.

FOB assessments (US East Coast, bulk)

• HMS 80:20 – $303/t, down by $6/t w-o-w.
• Shredded – $323/t, down by $6/t w-o-w.

Updates on key importers

Turkiye: Demand for US-origin ferrous scrap eased last week, with deep-sea prices slipping by $7/t w-o-w. A steady flow of cheaper EU cargoes narrowed the spread with US and Baltic supplies, pressuring sentiment and limiting trade.

Factors shaping Turkish scrap demand

• Turkish mills reduced bids, leaving sellers close to breakeven.
• EU-origin cargoes proved more flexible, adapting quickly to Turkish pricing.

Buyers remained cautious, delaying bookings, as weak steel demand limited imports, while low prices and unfavourable exchange rates pressured European suppliers.

Bangladesh: Demand for US-origin ferrous scrap stayed subdued over the past week, with deep-sea bulk activity limited. Mills resisted high offers and held back from major bookings, even as domestic sentiment briefly improved with rebar prices rising, though tags softened again. Containerised trades remained thin, reflecting the cautious stance of buyers.

US-origin HMS 80:20, bulk – CFR assessments

• Turkiye – down by $5/t w-o-w at $335/t.
• Vietnam – down by $2/t w-o-w at $340/t.
• Bangladesh – down by $1/t w-o-w at $351/t.

Outlook

The US ferrous scrap export market is likely to stay under pressure in the short term. Key buyers, especially in Turkiye, remain cautious amid weak steel demand and rising freight costs. Prices seem near a short-term floor, with recovery dependent on stronger mill demand.