NEW YORK U.S. bulk
ferrous scrap export prices to Turkey inched slightly higher
after confirmation of two sales late last week indicated a
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
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
However, others said the prices
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
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
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.