NEW YORK U.S. bulk ferrous scrap export prices to Turkey inched slightly higher after confirmation of two sales late last week indicated a modest increase.
Although no sales have been reported so far this week, AMM received confirmation Wednesday of a bulk cargo shipped from the East Coast to Turkey and another shipped out of New Orleans late last week.
Market participants in the United States and Turkey said the cargo sold off the East Coast went for $390 per tonne c.f.r. for 40,000 tonnes of a 90/10 mix of No. 1 and No. 2 heavy melt and 5,000 tonnes of shred. The cargo reportedly will ship at between $2 and $4 additional freight due to its final destination.
Initial assessments indicate that, when normalized, this deal puts HMS 1&2 (80:20) at around $384 per tonne c.f.r. Turkey, a $3-per-tonne gain from an East Coast sale made just before the Independence Day holiday and a $1-per-tonne increase from $383-per-tonne sales by East Coast exporters to Turkey in previous weeks.
The bulk cargo from the Gulf Coast late last week reportedly sold at $390 per tonne c.f.r. for HMS 1&2 (90:10) and $402.50 per tonne c.f.r. for bonus-grade material.
But some sources in Turkey and the United States questioned the reported prices.
"Nobody is believing these numbers," a source in Turkey said. "It sounds strange. Many people are thinking that the real sales price is below this. The most surprising is the price of bonus." The source said the reported contract price of $390 per tonne "is correct, but this is just an announcement. Nobody sees what is written on the contract."
However, others said the prices appeared accurate.
Sources said they believe the bonus scrap exceeded half the total volume contracted on the bulk vessel and therefore attracted a much higher premium than the typical $10-per-tonne premium over heavy melt.
After removing the additional freight costs and normalizing the price of the cargo to an HMS 1&2 (80:20) basis, one source pegged the value at about $385 per tonne, a $2-per-tonne increase from previous sales.
However, several exporters said a quiet sales period to Turkey makes it difficult to determine if the normalized price indicates a true market direction.
"Its difficult to say if it has found bottom or is actually stronger or could even see some weakness," one exporter said. "The markets very quiet and we wont know until the next sale to Turkey."
AMMs East Coast Ferrous Scrap Export Index stood at $352.61 per tonne f.o.b. New York on Monday on an HMS 1&2 (80:20) basis.