NEW YORK U.S. bulk
ferrous scrap export prices to Turkey lost some ground this
past week after a lone sale sent values down a little more than
Market participants said the
sale comprised a mixed cargo carrying between 25,000 and 30,000
tonnes of heavy melt, shredded and bonus grade scrap.
Sources said the sale was
concluded at $410 per tonne c.f.r. Turkey for an 80/20 mix of
No. 1 and No. 2 heavy melt. The delivered price is unchanged
from the last confirmed sale of more than 40,000 tonnes to
Turkey, transacted Nov. 9. However, higher freight rates on
last weeks sale, given a difference in the volume and
vessel type, sent f.o.b. values down more than $8 per
AMMs East Coast
Index for HMS 1&2 (80:20) settled at $382.77 per tonne
f.o.b. New York Monday, down 2.2 percent from $391.30
Market participants suggested
early last week that Turkish producers were wary of delivered
prices of $410 per tonne for HMS 1&2 80:20, and some
speculated that prices were under pressure to reach a lower
amm.com, Nov. 14).
Rumors this week that a few
additional bulk cargoes might have sold over the past five days
were shot down by other sources in Turkey.
"(One U.S. exporter) stopped
offering numbers like their other competitors and welcoming the
counter proposals," one source based in Turkey said. "We did
not hear of any booking. (A second U.S. exporter) has already
sold some cargoes. They are not under pressure to sell. But it
seems that U.S. sellers are in competition to sell."
Offers from the United States at
about $410 per tonne c.f.r. Turkey were not picked up "as the
Turks took a wait-and-see attitude" during the second half of
last week, a second source said.
Others pegged U.S. offers at
anywhere between $405 and $415 per tonne c.f.r., with no deals
"U.S. suppliers did not come to
markets and offer scrap clearly. As we heard, they are quietly
announcing that (they are) ready to sell at around $405 per
tonne for HMS 1&2 80:20," a third source said.
"Buyers prefer to wait and watch
the market. Mills are not in good positions for selling their
products," the source said, adding that Turkish mills this week
are expected to concentrate on completing sales of finished
products before buying scrap "accordingly."
A fourth source concurred.
"Turkish buyers have been quiet for a couple of days. They were
not showing interest in deep-sea scrap offers. Actually, most
of the buyers are expecting that scrap prices can decrease," he
A fifth source said $410 appears
to be the cap on offers. "I feel the market is stabilized at
(the) $405 level. (There are) possible production cuts in the
offing," he added.
On the West Coast, reports of a
bulk sale of shredded scrap to China and a second mixed cargo
bulk scrap sale to southeast Asia helped push prices a tad
AMMs West Coast
Index for HMS 1&2 (80:20) settled Monday at $363.62 per
tonne f.o.b. Los Angeles, up 1.8 percent from $357.13