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 levels (amm.com, Dec. 14).
A slight weakness in West Coast export tags pushed AMMs West Coast Ferrous Scrap Export 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 previously.