NEW YORK U.S. East Coast
ferrous scrap bulk exporters continued their stalemate over new
price levels with buyers for Turkish mills, rendering the
Exporters and offshore consumers
waited patiently for U.S. mills to settle their buying programs
for October (
amm.com, Oct. 2). When domestic trading was
complete, offshore consumers learned that U.S. steel mills in
markets that ship both domestically and abroad had indeed
followed the recent drop in export tags but hadnt
In crucial supply markets, such
as the Mid-Atlantic region, exporters and domestic mills are
now competing head to head for key grades like heavy melt and
Fledgling sales to the Middle
East and other foreign markets for Turkish steel producers,
along with rising energy costs in Turkey, are forcing buyers to
find some reprieve from raw material costs, according to
several market participants.
But U.S. exporters looking to
secure large volumes of scrap for the flurry of bulk orders
booked in mid- to late September and scheduled for delivery in
late October and early November have refused to budge from the
last transaction price of $365 per tonne c.f.r. for an 80/20
mix of No. 1 and No. 2 heavy melt scrap.
As a result, no bulk cargoes
were booked from the United States, and Turkey instead turned
to Europe to secure scrap.
"U.S. sellers were not very
aggressive last week. Price indications from the U.S. were not
below $365 per tonne," one source said.
"Turkey is not ready to pay at
this level because the rebar (price) was on the way up from
$580 to $595 levels, but it stopped and started to go down to
$580," a second source said.
"The market collapsed in Turkey
this week," according to a third source.
"In (one Turkish region), some
mills stopped their production for a while. It is my opinion
that the market could be going into a crisis like 2008. The
difference between 2008 and now is that in 2008 Turkey had
foreign markets like the Middle East to sell products to. But
now the Middle East is also not in a good condition due to the
wars everywhere," this source added.
The lack of activity in the U.S.
and Turkish scrap markets left AMMs East Coast
Index unchanged Monday at $340.89 per tonne f.o.b. New York
for HMS 1&2 (80:20).
On the West Coast, only one
source reported a bulk cargo sale. That sale, concluded late
last week, went to Vietnam at $380 per tonne c.f.r. for HMS
1&2 (80:20), with shredded scrap trading $5 higher.
While at least one source in the
region suggested the cargo might have traded previously, a
source familiar with the deal said it took place last week.
The lone sale sent
AMMs West Coast Ferrous Scrap
Index down Monday to $334.81 per tonne f.o.b. Los Angeles,
a 0.9 percent decline from previous levels (
amm.com, Oct. 1).