NEW YORK The U.S. East
Coast ferrous scrap export market remained unchanged in the
past week despite just one bulk cargo sale to Turkey and
minimal interest from India.
Some market participants said
Fridays bulk sale to Turkey at $450 per tonne c.f.r. for
an 80/20 mix of No. 1 and No. 2 heavy melting steel scrap
indicated possible firming in the market. The bulk shipment was
comprised mostly of shredded steel scrap, which sold at $455
per tonne c.f.r., as well as some plate and structural scrap,
which went for $460 per tonne c.f.r., sources said.
"Just one sale at the previous
weeks prices is good. It looks like the market is firming
up in Turkey," a source at one large exporter said. "Turkish
mills are looking for $460 for shred and $450 for 80/20 heavy
melt. U.S. exporters will probably end up selling at $455 for
shred, which is still a good price. I expect more action from
Turkey this week."
Fridays sale paled in
comparison to the previous week, when East Coast exporters
shipped four bulk cargoes to Turkeythree at the same
price levels noted above and a fourth a bit higher at $453 per
tonne c.f.r. for an 80/20 mix of heavy melt and $463 per tonne
c.f.r. for plate and structural scrap.
As large exporters look to
Turkey for increased purchases this week, shippers of
containerized scrap likely will encounter another week of
resistance from India as the rupee continues to deteriorate vs.
the U.S. dollar.
U.S. shredded steel scrap offers
to India were unchanged last week in a range of $490 to $495
per tonne c.f.r. Nhava Sheva, India, with some offers reported
at $485 per tonne, although sources said very few, if any,
containers had sold at that level.
"The market here on spot has
gone down due to the sudden fall of (the Indian) rupee," a
Mumbai-based importer of U.S. scrap said. "Booking on
containers to India from the U.S. is being offered at $470 for
80/20 heavy melt and $485 for shred. With negotiation, shred
can be available at the $480 level but (there is) no interest
At least two sources said the
Indian market could fall further to a range of $470 to $475 per
tonne for containerized shredded scrap. The upcoming monsoon
season, when construction grinds to a halt, will be a major
driver, sources said.
Market participants said one
U.S. bulk cargo was offered at $493 per tonne c.f.r. Chennai
for a mix of shredded and plate and structural, but prices were
still being negotiated down.
One East Coast exporter said
80/20 heavy melt was trading at about $425 per tonne f.a.s.
Newark, N.J., last week for 20-foot containers, with 40-foot
containers at around $407 per tonne. Meanwhile, shredded scrap
stood at $445 per tonne f.a.s. Newark, he added.
Container prices for shredded
scrap out of Baltimore dropped as much as $8 per tonne last
week, another exporter said.