Turkey, Asia drive ferrous export demand gains

Nov 12, 2010 | 01:23 PM | Michael Marley

Offshore demand for ferrous scrap remains strong, with buyers from the eastern Mediterranean and Asia both scooping up all the metal they can get from U.S. docks, industry sources said.

Turkey has been the dominant force in the U.S. market and was still buying this past week, one trader said, adding that he expects mills there to purchase a few more cargoes ahead of the upcoming Kurban Bayrami national holiday. Average prices for bulk cargo shipments to main Turkish ports are said to be about $390 per tonne delivered for an 80/20 mix of No. 1 heavy melting steel scrap and $395 per tonne for shredded scrap, with bonus grade (five-foot plate and structural scrap) another $5 per tonne higher than shredded.

Ocean freight rates for bulk cargoes from U.S. East Coast ports are said to be less than $30 per tonne. That would take the heavy melt price down to about $360 per tonne at the port and shredded to $365 per tonne. Many of the major U.S. exporters have been buying from local suppliers at about $325 per long ton.....