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 2 percent.
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 tonne.
AMMs East Coast Ferrous Scrap 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 previously.
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 level (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 reported.
"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 said.
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 higher.
AMMs West Coast Ferrous Scrap 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 previously.