West Coast Scrap Exports Hit Historic Low
US west coast scrap exporters are facing limited demand from Asia, pushing cargoes toward Turkey. A recent 50,000t bulk shipment included HMS 1/2 90:10 and shred for December delivery. Market sources estimate HMS at $350/t and shred at $370/t. Limited sale opportunities coincide with rebounding Turkish scrap prices and weak Asian buying amid seasonal and financial challenges.
Monsoon rains delayed construction recovery in Bangladesh and India, reducing scrap demand. Bangladeshi buyers struggle with financing amid a liquidity crunch, while Indian mills prefer domestically sourced iron units. These factors pushed US exporters to explore alternative markets, making Turkey a viable outlet for larger bulk shipments.
Turkey Emerges as Strategic Market for USWC Scrap
Turkish steelmakers value shredded scrap at a $20/t premium over HMS 1/2 80:20, higher than Bangladesh’s $5/t premium. The recent deal illustrates that shipping larger vessels to Turkey maximizes cost efficiency and market value. Historical data shows west coast exports to Turkey are rare, with only seven bulk cargoes over the past decade, most exceeding 42,000t. The diverging pricing trends between Asia and Turkey could establish a sustained arbitrage channel.
SuperMetalPrice Commentary:
US west coast scrap exporters may increasingly target Turkey as Asian demand weakens. Structural shifts, combined with higher Turkish premiums and freight cost advantages, indicate a strategic opportunity. Market participants should monitor seasonal disruptions, regional liquidity, and price spreads for optimal timing. This export highlights the evolving dynamics of global ferrous scrap trade and arbitrage potential.
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