NEW YORK U.S. ferrous scrap exporters made no new bulk sales to Turkey over the past week due to the Ramadan holiday and a slow return to trading, sources in both countries reported.
One source in Turkey said the only formal offers this week came from European short-sea exporters who offered Black Sea cargoes of an 80/20 mix of No. 1 and No. 2 heavy melt at around $390 per tonne, but Turkish mills were looking for lower prices.
U.S. exporterswho ship a much-preferred higher-quality mix of HMS 1&2 (80:20)reportedly offered material in a price range of $407 to $410 per tonne during the past week, in line with previous bulk sales to Turkey (amm.com, Aug. 20).
Buyers in Turkey, however, said they were looking at price points closer to $405 per tonne.
"(Turkish buyers) are struggling with these prices and wish to drop to $405," one source said. "While U.S. exporters sold a good quantity, the Turkish buyers expect the European suppliers to be in a weaker position now and to accept these lower levels. In the meantime, the dollar-euro rate is weaker and not good for European exporters who cannot drop their price ideas."
Sources said buyers in Turkey are likely to return to the market later this week and will look for early indications on where the U.S. domestic market is likely to settle for September.
"(Im) hearing the buyers interest is at $395 per tonne for heavy melt. However, I am also hearing that the U.S. East Coast market is poised to increase for September despite (one supplier) selling sideways," said a second source, referring to last weeks early sale of 50,000 gross tons of shredded scrap in the Cleveland region (amm.com, Aug. 24).
With no fresh sales last week, AMMs East Coast Ferrous Scrap Export Index remained unchanged Monday at $382.44 per tonne f.o.b. New York for HMS 1&2 (80:20).
On the West Coast, a lone bulk sale to a South Korean mill was concluded late last week at prices that were up about $6.50 per tonne from previous trades. The mixed bulk cargo sale was finalized at $422 per tonne c.f.r. South Korea for HMS 1&2 (80:20) and $427 per tonne c.f.r. for shredded scrap, AMM understands.
The trade sent AMMs West Coast Ferrous Scrap Export Index up 1.7 percent to $382.43 per tonne f.o.b. Los Angeles for HMS 1&2 (80:20) from $375.87 previously.
Sources said Korean buyers are reluctant to trade with the United States at the moment, while China is virtually out of the bulk market.