Overseas steelmakers paying more for scrap

Dec 13, 2010 | 12:31 PM |

Foreign steelmakers looking to buy ferrous scrap from U.S. exporters may have to boost their buying prices to get the material they need, industry sources said.

One U.S. exporter booked an order from Turkey on Friday at an average price of $450 a tonne delivered, up about $30 from the last round of buying. At the same time, he added, there have been sales to Turkey by European export yards at about $434 a tonne delivered for an 80/20 mix of No. 1 and No. 2 heavy melt and $420 a tonne for a lower-quality 70/30 mix.

One U.S. trader said that a sale by a U.S. East Coast yard has raised the price that exporters are seeking from eastern Mediterranean steelmakers to a minimum of $444 a tonne delivered for the 80/20 mix, and that, in turn, has raised their expectations for shredded to at least $449 a tonne and another $5 a tonne for bonus grade scrap (5-foot plate and structural scrap).....