NEW YORK Turkish steel
mills returned to U.S. docks this week and sent ferrous scrap
export prices spiraling as three bulk cargoes traded in two
Market participants said that
two exporters booked sales to three different Turkish mills at
prices more than $20 per tonne above the last reported bulk
One exporter reportedly sold a
bulk cargo of a 90:10 mix of No. 1 and No. 2 heavy melt scrap
and shredded scrap, with the HMS 1&2 (90:10) priced at $416
per tonne c.f.r. and the shred at $421 per tonne c.f.r.
A second exporter reportedly
completed two sales to different Turkish buyers. Sources said
one mixed bulk cargo was sold at $416 per tonne c.f.r. for HMS
1&2 (90:10) and $426 per tonne for plate and structural
scrap, indicating a bigger premium for the latter.
One source said the same
exporter sold another cargo of 40,000 tonnes of HMS 1&2
(80:20) at $414 per tonne c.f.r.a $30-per-tonne increase
over the last U.S. sale to Turkey, which had valued HMS 1&2
(80:20) at between $383 and $384 per tonne c.f.r.
The sales come after nearly 10
trading days of higher offers from the United States, which
gained further support from rising domestic tags.
Last week, Turkish buyers chose
to pick up cheaper tons from Europe, leaving U.S. exporters dry
despite the better quality of scrap.
U.S. offers to Turkey moved as
high as $415 per tonne c.f.r. for HMS 1&2 (80:20) but scrap
from Britain and Europe was available at between $10 and $20
lower. For example, sources said last Friday that one cargo of
20,000 tonnes of HMS 1&2 (80:20) was sold by a British
trader to a Turkish mill at $399 per tonne c.f.r.
Sources were divided on whether
this weeks price increases on U.S. exports to Turkey
indicated a truly stronger market or rather a temporary spike
in which Turkish mills were forced to follow the U.S. domestic
"Demand for finished steel
products remains challenging in the (United States) and
outside," one source said. "Prices have already cooled in the
United States, and its anyones guess if the same
will happen with exports."