NEW YORK U.S. East Coast
ferrous scrap export prices strengthened this past week as
Turkish mills returned to the market to secure tons for
December and early January.
Market participants reported at
least six bulk cargo sales off the East Coast and another two
from the South.
Deals reported for the past week
were concluded in a wide range of $384.50 to $392 per tonne
c.i.f. Turkey from the East Coast for an 80/20 mix of No. 1 and
No. 2 heavy melt. At least two bulk sales were scheduled for
prompt delivery, sources said.
Though delivered prices gained
momentum as the past week progressed (
amm.com, Dec. 14), f.o.b. values from the East
Coast recorded a smaller increase as tightness in vessel supply
pushed freight rates higher, sources told AMM.
Two bulk sales of around 25,000
tonnes each were also expected to attract higher freight rates
from bulk sales concluded for 40,000- to 50,000-tonne cargoes.
However, delivered prices for cargoes of both sizes traded
within the same range.
As a result, AMMs
East Coast Ferrous Scrap Export
Index for HMS 1&2 (80:20) rose 0.5 percent to $363.30
per tonne f.o.b. New York, up from $361.40 previously. Freight
rates were reportedly anywhere between $2 and $3 per tonne
higher than previous levels, with 25,000-tonne cargo freight
trading about $4 above freight rates for larger vessels.
Outside the East Coast, sources
reported a sale out of New Orleans at $393 per tonne c.i.f.
Turkey for HMS 1&2 (80:20), and a smaller-volume heavy melt
sale out of Tampa, Fla., at about $385.50 per tonne c.i.f.
Turkey over the past week.
Bulk export activity also picked
up on the West Coast, with sources reporting one bulk
sale to Vietnam and one to South Korea.
A bulk sale of No. 1 heavy melt
was reportedly fixed at $385 per tonne c.i.f. South Korea and
was followed by a bulk sale of shredded scrap at $405 per tonne
c.i.f. Vietnam. The latter attracts a significantly higher
freight rate than shipments to South Korea.
Last weeks bulk sales came
quickly on the heels of two bulk sales of No. 1 heavy melt to a
single consumer in South Korea, which traded at slightly higher
amm.com, Dec. 14).
A slight weakness in West Coast
export tags pushed AMMs West Coast Ferrous Scrap
Index for HMS 1&2 (80:20) down 0.5 percent to $362.82
per tonne f.o.b. Los Angeles from $364.50 per tonne