While a number of offshore mills have purchased US scrap in the last couple weeks, activity levels remain sporadic and prices remain soft. US domestic scrap prices falling sharply in early June and the expectation of another drop in July is dampening export prices. In a quarterly conference call with investors this past week, Schnitzer Steel President and CEO Tamara Lundgren noted that "declines in US domestic prices haven't gone unnoticed by the export market." Turkey has been somewhat active in scrap bookings the last couple weeks, which has led to a slight increase in export prices from the US. A few ex-US offers for HMS I/II scrap to Turkey had fallen just under $380/mt CFR about two weeks ago, but sales in the final days of June were at about $383/mt CFR for HMS I/II and $388/mt CFR for shredded scrap. Still, however, Turkey is able to get scrap at similar levels from Russia and the UK with less expensive freight rates and shorter lead times, so Turkish mills are "shopping around" before placing any orders, according to scrap exporters on the US East Coast. Ex-US export scrap activity to India is almost non-existent at the moment as higher freight rates have forced Indian mills to look elsewhere to secure their scrap needs.
Export scrap activity on the US West Coast is also lethargic and sentiment remains extremely poor. China picked up about seven bulk cargoes from the US this past week at approximately $390-$392/mt CFR but sources indicate that was a sale made to eliminate some inventory and Chinese mills are still awaiting US export scrap prices to hit bottom before making more purchases. Finished steel demand in Taiwan is still weak so Taiwanese mills have cut back scrap purchases and are opting to buy locally or from Japan when necessary. The latest container scrap deals from the US to Taiwan were concluded at $375-$380/mt CFR, but prices could have another $10-$15/mt CFR to fall. Scrap sales from the US West Coast to Vietnam in the last couple weeks were at around $450/mt CFR for bulk cargoes and $400-$410/mt CFR for containers.