NEW YORK U.S. ferrous
scrap export prices to Turkey have dropped more than $10 per
tonne after an exporter broke a two-week lull and booked a bulk
Market participants in both
countries reported the sale of a mixed bulk cargo carrying an
80/20 mix of No. 1 and No. 2 heavy melt and shredded scrap as
Turkish mills resumed activity and, in the process, picked up
an additional cargo from the United Kingdom. Both cargoes have
traded for prompt delivery, sources said.
The U.S. bulk cargo sale was
reportedly completed at $396 per tonne c.f.r. Turkey for HMS
1&2 (80:20) and $401 per tonne for shredded scrap, sources
said. Information varied on the volume of each grade, with the
heavy melt component said to be between 30,000 and 35,000
tonnes and shredded between 5,000 and 10,000 tonnes.
The price indicates at least a
$12-per-tonne drop from previous U.S. sales, which were
completed in a range of $408 to $410 per tonne c.f.r. Turkey
two weeks ago.
On Wednesday, a second Turkish
mill picked up a bulk cargo from the United Kingdom at $395 per
tonne for HMS 1&2 (80:20), sources said. Details of another
cargo sale from the United Kingdom to Turkey also emerged on
Wednesday, but sources said the trade was completed late last
week at $404 per tonne c.f.r. for a full bulk cargo of shredded
Buyers and traders in Turkey
said they werent surprised by the large price drop.
"When I have heard the counters
of Turkish buyers are at $390, I was expecting to hear sales
from (the United States) at between $395 and $400 (per tonne).
So I am not surprised," one source said.
"The funny thing is that (one
U.S. exporter) is sill quoting high numbers while competitors
are trying to sell at these levels. I will not be surprised if
I hear $390 (for a sale) tomorrow," he added.
Sources dubbed it a buyers
market, noting that with reinforcing bar prices in
Turkeys local market at $605 to $610 per tonne, even $390
per tonne for U.S. HMS 1&2 (80:20) could seem high to some
Suggesting that $390 per tonne
was the next price target for buyers in Turkey, a second source
said he was surprised not by Wednesdays $396-per-tonne
trade but rather the "promptness of the cargo."
A third source said freight
rates from the United States to Turkey were hovering between
$29 and $30 per tonne for handysize cargoes and between $24 and
$25 per tonne for large Supermax cargoes, but cautioned that
the supply of the larger vessels was "tightening up."