US export scrap activity has been extremely quiet the last couple weeks, one of the main culprits dragging down US domestic scrap prices in early September. Few deals off of the US West or East Coasts were reported in the last two weeks of August and export scrap demand so far in September remains tepid as well. The latest scrap cargos sold off the US East Coast to Turkey this past week went for $395-$400/mt CFR, down about $10-$12/mt in the last two weeks. Even as some deals were concluded at $410-$412 in the latter half of August, Turkish mills were countering offers at $390/mt CFR, and with Turkish mills making very few buys, sources say it was inevitable that prices would drop. And ex-US export scrap prices are expected to decrease further as exporters are anticipated to lower their prices another $5-$10/mt in the next week or so.
The Far East has expressed little to no demand for US scrap amid plummeting iron ore and finished steel prices in China. A few container scrap cargos were sold to India about one week ago at $425/mt CFR for shredded scrap, down about $10/mt from earlier cargos, but new Indian offers are now closer to $415/mt CFR. Softening export demand and prices are one reason why US domestic prices for September have fallen, although slack demand for scrap and a weak finished steel market are also driving factors. While the market had not yet fully settled by end-of-business Friday, most sales in the US East Coast were reported at sideways to down $10-$15--those who bought earlier paid prices that reflected no change from August. Meanwhile, declines in the US Midwest were expected to be steeper, where scrap prices in areas such as Chicago and Detroit increased substantially more in August than in the East Coast.