NEW YORK U.S. East Coast
ferrous scrap export yards have dropped buying prices by $10 to
$20 per gross ton in the past week as negative sentiment
pervades the market.
Market players in Boston, New
York, New Jersey and Philadelphia said large exporters had cut
buying prices following weak sales to Turkey.
Export prices to Turkey fell
about $20 per tonne in about two weeks after one exporter
completed North Americas only bulk sale to Turkey on
Thursday (AMM, May 21). The exporter offered a grim
near-term outlook, saying it was unable to sell a second bulk
cargo at the same marked-down price.
"Export yard buying prices have
dropped about $30 per gross since earlier this month," a large
supplier said. "Exporters have enough scrap and arent
getting any export sales. Theyre now trying to average
down their position."
In Boston, sources said
exporters announced a $10-per-gross-ton drop across most grades
Monday, while New York prices were said to be down $15 per ton
on average. Exporters are said to be buying No. 1 heavy melt
scrap at around $375 per ton at the docks in Boston, although
one supplier said there were some offers at about $380.
In New York and New Jersey,
sources offered a wider range of prices at the docks, with most
numbers coming in at $370 per ton for No. 1 heavy melt. But at
least two suppliers said offer prices from one export yard were
at $365 per ton.
"There could be more drops
coming," a second supplier said. "At the moment, were
still at $370 per ton. Ive heard of lower numbers but
havent been able to confirm (them)."
A third supplier said weak
finished product sales in Turkey spooked the market.
"Turkeys not buying U.S. scrap. The exporters here think
the bottom for No. 1 heavy melt at the docks will be between
$345 and $355 per ton," he said.
A negative outlook also swept
the West Coast last week, when exporters dropped buying prices
by $10 per gross ton.
A source at one exporter said it
was forced to push down prices as export prices of
containerized scrap had dropped by as much as $13 in the
previous two weeks. "There is no upside movement in prices," he
"The overseas markets have been
weak for a while. This drop didnt catch anyone off
guard," said a West Coast supplier who anticipates a further
decline in prices.
A third West Coast market
participant said that while softer prices at the docks came as
no surprise, it also wouldnt surprise him "if a weaker
bulk market tipped the fulcrum into a more significant