- US domestic supply crunch increases offers by $20-30/t
- Importing countries cautious; bookings slow across Asia
US ferrous scrap export offers rose by up to $9/tonne (t) w-o-w, driven by domestic price hikes and tighter availability, though demand in key importing markets remained cautious.
US steelmakers and scrap dealers finalised March scrap contracts with increases of $20-30/t across key grades, following a week characterised by trade tensions with Canada. It may be noted that Canada is the leading scrap exporter to the US. However, the US domestic scrap market is getting affected because of the US tariffs, leading to supply tightness.
Prices moved higher from February, supported by limited supply due to slower winter collection and firm US hot-rolled coil prices. However, settlement talks faced delays amid escalating US-Canada trade friction, which intensified after President Trump threatened to raise tariffs on Canadian steel imports to 50% starting 12 March, prompting both countries to initiate trade negotiations.
FOB assessments (US East Coast, bulk)
- Shredded were up by $9/t w-o-w to $374/t.
- HMS 80:20 increased by $9/t w-o-w to $354/t.
CFR assessments (bulk)
- HMS 80:20 was at $375/t CFR Turkiye, up by $8/t w-o-w.
- HMS 80:20 stood at $360/t CFR Vietnam, up by $5/t w-o-w.
- HMS 80:20 was at $374/t CFR Chattogram, up by $4/t w-o-w.
Market updates on key importers
Turkiye: Demand for US-origin scrap in the Turkish market is showing signs of resistance despite firm pricing from suppliers. Deep-sea bulk scrap prices from the US rose, supported by a stronger euro and tight availability. FOB levels from the US East Coast also increased.
However, mills in Turkiye are cautious. Fresh offers from US suppliers at $385-390/t CFR are stretching buyers’ acceptance levels. A US-origin HMS 80:20 cargo is believed to have been sold at $382-383/t CFR to an Iskenderun mill. Most buyers are keeping their tradable range at $375-377/t CFR.
Bangladesh: Bulk HMS 80:20 offers from the US rose, as suppliers held firm on pricing. Fresh offers are now circulating at $380/t CFR, but buyer interest has largely stayed anchored at the $370/t level.
The increase in offer levels reflects tight availability and rising freight costs, which are prompting US suppliers to protect their margins. However, sluggish rebar sales in the domestic market have kept Bangladeshi mills cautious in their procurement, with many adopting a wait-and-see approach.
Vietnam: US-origin scrap demand in Vietnam showed limited improvement. Offers for deep-sea HMS 80:20 have edged up to $360-365/t CFR, with bulk cargoes assessed at $360/t. While construction sentiment has slightly improved, Vietnamese mills remain hesitant to book large volumes, citing broader market uncertainties and a need to monitor China’s policy direction, anti-dumping risks, and billet price movements.
Outlook
Suppliers are likely to maintain elevated offers amid tight scrap availability and strong domestic support. Unless steel market sentiment improves, trade activity may stay cautious in the near term.
Leave a Reply