- US scrap gains support from stronger finished-steel pricing
- Weak downstream demand and cautious buying cap gains across Latin markets
Ferrous scrap export markets showed mixed trends during the week ended 4 September, with stronger Turkish demand lifting US East Coast prices, while Brazil and Mexico remained stable amid weak downstream demand. Mills across markets continued to adopt a cautious procurement approach, with finished-steel demand, inventories, raw-material costs and trade activity shaping price direction.
US
US scrap export prices rose w-o-w, supported by stronger Turkish demand and higher rebar prices. HMS 80:20 increased by $4/t to $344/t FOB, while shredded scrap rose to $364/t FOB.
Price sentiment strengthened after a fresh Turkish transaction at $380/t CFR for HMS 80:20, shredded, and bonus scrap. Exporters also reported higher inquiry levels from Turkish mills, providing additional support to US export prices.
On the West Coast, export activity resumed after a brief gap, with Bangladesh returning to the market. However, recent sales resulted in lower HMS 80:20 prices on the coast.
In the domestic market, September obsolete scrap prices were largely expected to remain unchanged, while some Ohio mills agreed to an $10-12/t increase for prime busheling. Meanwhile, US HRC prices rose by $12-15/t w-o-w to $1,210-1,215/t, supported by bullish sentiment and expectations of around 1 mnt of mill maintenance-related supply cuts through year-end.
Brazil
Brazilian ferrous scrap prices remained stable in the week ended, although market sentiment weakened amid concerns over demand.
HMS 80:20 remained at BRL 800/t ($157/t) FOT, while turnings stood at BRL 700/t ($137/t) and clean steel scrap at BRL 900/t ($176/t). Export prices were unchanged at $285/t FOB for HMS 80:20 and $305/t FOB for shredded.
Some mills increased scrap purchases as high pig iron prices improved scrap’s cost competitiveness. However, recyclers expect weak market conditions ahead of the October elections.
Stronger prices paid by Indian buyers could support Brazil’s export prices and lift domestic scrap values in the coming days.
Mexico
Mexico’s ferrous scrap market remained stable in the week ended, as weak long-steel demand, high inventories, and rainfall limited buying activity.
Busheling was assessed at MXN 7,100-7,200/t ($420-426/t) FOB Northeast, while HMS 90:10 stood at MXN 6,400-6,500/t ($379-385/t). Producer bids were around MXN 6,900-7,000/t ($408-414/t) for busheling and MXN 5,500-5,800/t ($325-343/t) for HMS 90:10, DAP Bajio.
Dealers indicated galvanized busheling at MXN 7,000-7,300/t ($414-432/t) and HMS 90:10 at MXN 6,000-6,500/t ($355-385/t) in the Northeast. Market participants expect prices to remain stable through September, with some potential for strengthening toward month-end.
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