- Stronger deep-sea offers lift prices to Nov’24 levels
- Domestic tags rise amid weather-related disruptions
US ferrous scrap export offers increased by about $4/tonne (t) w-o-w, fuelled by stronger deep-sea scrap offers. Prices climbed up to levels last seen in November 2024, driven by rising finished steel prices and active February trading.
Domestic scrap traders targeted monthly hikes of $40/t or more for shredded. Since January, they have faced higher costs, paying an additional $40-50/t for shredder feed due to winter storms impacting the eastern US.
FOB assessments (US East Coast, bulk)
- Shredded rose by $4/t w-o-w to $358/t.
- HMS (80:20) increased by $4/t w-o-w to $338/t.
CFR assessments (bulk)
- HMS (80:20) was at $360/t CFR Turkiye, up $6/t w-o-w.
- HMS (80:20) stood at $345/t CFR Vietnam, up by $5/t w-o-w.
- HMS (80:20) was at $360/t CFR Chattogram, stable w-o-w.
Updates on key importers
Turkiye: Demand for US-origin scrap in Turkiye remained steady, with workable levels for US and Baltic-origin HMS (80:20) indicated at $355-360/t CFR. However, US sellers were firm, maintaining a minimum target of $360/t CFR, limiting negotiation flexibility.
In contrast, European and Baltic recyclers were less aggressive, as weak demand from European mills kept their export prices competitive despite rising HMS collection costs.
Turkish deep-sea bulk scrap prices rose by $5/t w-o-w, driven by higher-priced US-origin deals and strong domestic buying. US ferrous scrap saw its sharpest rise, with February trades finalised amid higher finished steel prices. US-origin HMS (80:20) hit $360/t CFR Turkiye, up $5/t w-o-w, while US East Coast HMS (80:20) rose $3/t w-o-w to $338/t FOB.
Bangladesh: Demand for US-origin scrap in Bangladesh remained weak due to sluggish construction activity and rebar sales. While domestic scrap was in short supply, sluggish rebar sales limited the need for fresh imports. Buyers, hesitant to make large bookings, limited imports to need-based purchases amid market uncertainty.
Bangladesh’s imported containerised scrap prices edged higher this week, supported by tightening global supply. US shredded was assessed at $365-370/t CFR, while US-origin HMS (80:20) bulk held steady w-o-w at $360/t CFR. Despite firm prices, mills stayed cautious, monitoring global trends before new purchases.
Vietnam: Demand for US-origin scrap in Vietnam strengthened, as key buyers returned from the holidays, driving market activity higher. Deep-sea bulk US HMS (80:20) cargoes rose by $5/t w-o-w to $345/t, reflecting increased interest after a period of stability.
US ferrous scrap imports, exports decline in CY’24
US ferrous scrap imports fell by 16% y-o-y in 2024 to their lowest level since 2019, mainly due to reduced shipments from Canada. Total imports stood at 3 mnt, down from 3.5 mnt in 2023. Imports from Canada declined by 15% y-o-y to 2.2 mnt in CY’24.
Meanwhile, in CY’24, US ferrous scrap exports dropped by 7% y-o-y to 13.4 mnt, the lowest since 2020. Exports to Turkiye increased by 9% y-o-y to 4.41 mnt, while shipments to Mexico declined by 31% to 1.8 mnt.
Outlook
US ferrous scrap prices may rise further given that President Donald Trump has imposed a 25% tariff on all steel and aluminium imports. This could drive domestic mini-mills to increase production and scrap consumption in the near term.
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