“There is not much shred around in the US and there is good demand for it everywhere... it really is that simple,” a US export source said of the current market balance.
Steel producers in the US domestic market have become fierce competitors to overseas mills, with both needing shredded scrap for their melt requirements.
As a result the usual export spread between HMS and shred has swelled to $19 -20 per tonne from $5 per tonne, forcing exporters to pay more to export US-origin material.
The preference for shredded scrap in the international market is obvious in a pair of sales to Turkey on Tuesday June 15. Two US East Coast exporters sold shredded scrap at a $7-per-tonne increase, while an 80:20 mix of No1 and...