NEW YORK Prices for U.S.
bulk ferrous scrap exports to Turkey remained unchanged this
past week as exporters and buyers in Turkey continued to
negotiate a firm pricing level.
Market participants who had been
hopeful of a flurry of orders from Turkish mills before
Thanksgiving were left pondering over a market that reported no
East Coast sales.
A reported pre-Thanksgiving sale
from Houston to a Turkish mill set the rumor mills churning as
sources put the price at between $399 and $408 per tonne c.f.r.
for an 80/20 mix of No. 1 and No. 2 heavy melt.
Sources also were divided on
whether one or two cargoes were sold out of Houston, as some
believe a Turkish mill loaded its own vessel with only HMS
1&2 (80:20) and picked up a second bulk vessel of heavy
melt and shredded scrap.
While most sources believe it
was a single-cargo sale, at least two sources suggested that
the cargo of HMS 1&2 (80:20) will actually be shipped from
the East Coast and not Houston at around $400 per tonne c.f.r.
"Nobody knows the real price and
it is not too important what (the Turkish mill) paid because
they are not a reference customer. If it was another mill,
people would be in a hurry to find the real price. We did not
hear any other sales from the U.S. last week," one source
Some sources in Turkey said U.S.
offers continue to hover at or near $410 per tonne c.f.r., with
Turkish mills reportedly bidding between $400 and $405 per
tonne. A few others said that both U.S. offers and Turkish bids
were at least $5 lower than those levels.
"It all depends on who you talk
to. You get a different picture from U.S. sellers and a
different picture from Turkish mills," a second source said.
"Conflicting rumors on transacted prices are typical when
buyers and sellers are trying to find an agreeable price level
in what seems to be a weaker market."
A third trader source agreed
that the market was softening. "(Turkeys) domestic market
for finished products is weakening. Buyers lowered price
inquiries and exporters seem to be willing to accept $5 to $10
lower to (reach) the $400 level," he said.
A fourth source said Turkish
mills are struggling with current pricing levels. "Turks may
institute production cuts if scrap prices dont move down
further," he said.
The lack of any confirmed
activity from the U.S. East Coast left AMMs East
Coast Ferrous Scrap Export
Index unchanged Monday at $382.77 per tonne f.o.b. New York
for HMS 1&2 (80:20).
Meanwhile, market participants
on the West Coast reported an extremely quiet week, with no
trading activity, leaving AMMs West Coast
Ferrous Scrap Export
Index unchanged Monday at $363.62 per tonne f.o.b. Los
Angeles for HMS 1&2 (80:20).
U.S. offers of HMS 1&2
(80:20) to China were reported at around $395 per tonne