NEW YORK U.S. exporters
logged just two bulk cargo ferrous scrap sales to Turkey last
week, pressuring prices as the market chased weak sales
previously concluded out of Canada.
A single exporter booked both
sales to two different Turkish mills last Wednesday. The first
sale was confirmed as having been concluded at $384 per tonne
c.f.r. Turkey for an 80/20 mix of No. 1 and No. 2 heavy melt.
Reports of this sale emerged last week (
amm.com, Dec. 6). The same exporter then completed
a second bulk sale at $383 per tonne c.f.r. Turkey.
Both cargoes will reportedly
carry at least 40,000 tonnes of heavy melt, with the remainder
expected to be filled with shredded scrap, which traded $5 per
tonne above the HMS 1&2 (80:20) price.
A Canadian exporter earlier last
week reportedly sold three bulk cargoes of No. 1 heavy melt,
shredded and bonus-grade scrap to Turkey at a composite price
of $380 per tonne c.f.r. (
amm.com, Dec. 3), according to market sources.
Market sources expect last
weeks bulk cargo sales to ship out of two different
ports: one on the U.S. East Coast and the second on the Gulf
Coast, they said.
The sales caused
AMMs East Coast Ferrous Scrap
Index for HMS 1&2 (80:20) to slip Monday to $361.40 per
tonne f.o.b. New York from $364.92 per tonne previously.
The sheer volume of heavy melt
in the cargoes could have attracted a slight premium, one
source said, while a second source said freight rates have
inched higher this week.
The sales surprised many market
players, who claimed U.S. offers to Turkey had been higher all
week. A few sources valued U.S. HMS 1&2 (80:20) at $387 to
$390 per tonne c.f.r. Turkey, based on a mixed cargo sold at an
average of $392 per tonne out of Europe just one day prior to
the U.S. sales.
"In my opinion, European HMS
80/20 has to be $380 and USA has to be $390. The market is now
on the way up," a source in Turkey said after the European
The U.S. sales were probably
weaker due to the low benchmark set by the Canadian sales, some
sources said Monday.
One exporter shrugged off the
development. "Due to the winter coming, we expect a rising
price market," he said.
"Now that the U.S. domestic
market went sideways, I would have to think export offers from
U.S. suppliers will firm up," another source said.
On the West Coast, market
participants said there had been no bulk sales this past week,
leaving AMMs West Coast Ferrous Scrap
Index for HMS 1&2 (80:20) unchanged Monday at $364.50
per tonne f.o.b. Los Angeles.