Ferrous scrap awaiting Turkish run on US market
Dec 04, 2009 | 12:03 PM
| Michael Marley
U.S. ferrous scrap exporters are poised for another flurry of scrap buying by Turkish steelmakers, one U.S. scrap trader said.
The biggest problem they are having now is getting over the "sticker shock" of the higher prices being paid in the U.S. market by domestic steelmakers, he added. Prices for No. 1 heavy melting steel scrap have soared to as much as $260 per long ton on a delivered-to-mill basis in some cities, while shredded scrap is being quoted at $300 per ton delivered in the Midwest and in the South. The two grades are the preferred melt material that Turkish mills use to make rebar and other finished steel long products.
"They have little or no choice because they need scrap and the Dubai financial crisis is having no effect on them (Turkish steelmakers)," the trader said. "They just shrug it off."
Prices in the U.S. market have soared as much as $60 per ton in some regions, although export yards on the U.S. East Coast have been slow to raise their prices in recent weeks. Some are quoting about $225 per ton to local suppliers for No. 1 heavy melt and have begun to reach deeper inland with offers of $240 per ton, but that won't do much if they hope to amass enough scrap to ship overseas in January.....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.