NEW YORK A fresh U.S.
bulk ferrous scrap sale to Turkey has left the market uncertain
about future pricing trends as the sale was concluded at the
same level as last week.
Trading has been relatively
quiet thus far this week, with only one other bulk
saleoriginating in Europeconcluding on Wednesday,
market participants said.
A U.S. exporter sold 31,000
tonnes of an 80/20 mix of No. 1 and No. 2 heavy melt to Turkey
on Tuesday at $393 per tonne c.i.f., sources said. The cargo is
expected to carry an additional 2,000 tonnes of shredded scrap
sold at $5 higher than the heavy melt price, AMM has
been told. The heavy melt price was unchanged from last
weeks bulk sale out of the Gulf Coast (
amm.com, Dec. 14).
The mixed cargo sale out of
Europe on Wednesday indicated that the European exporter
negotiated a price higher than current U.S. levels. The
exporter sold some 16,000 to 17,000 tonnes of shredded scrap,
6,000 to 7,000 tonnes of HMS 1&2 (90:10), 1,000 tonnes of
bonus-grade scrap, 1,000 tonnes of No. 1 busheling and 2,500
tonnes of HMS 1&2 (70:30) at an average price of $395 per
tonne c.i.f. Turkey. Market estimates indicate an HMS 1&2
(80:20) price of roughly $390 per tonne for this European
Sources are divided on the
influence these sales might have on subsequent deals.
"There is a little movement in
the Turkish market, but in my opinion it is for some deals
which will be concluded before Christmas in Europe and the
(United States)," one European exporter said. "For the Balkan
market, we see mill bids decreasing $20. This could mean two
things: Either (Turkish mills) do not want material from the
Balkans ... or this will be the pattern for everyone in the
market. My modest opinion is that now the mills are almost
Several Turkish ports are
unloading numerous vessels, with more either anchored or en
route, the source added.
"Im hearing a lot of
chatter that Turkey is going to come out pretty weak,
price-wise, to start the year. I think the feeling out of the
(United Kingdom) is that if Chinas billet prices
continued to rise, then Turkey would have to raise (prices) as
well. ... (I) guess that is not going to happen just yet," one
U.S. exporter said.
Another U.S. exporter said that
it is "plausible" that the market will receive lower bids from
Turkey in January. "They are having a difficulty selling
product at the price they need. The issue right now is (that)
margins are being compressed everywhere," he said.
A fourth source speculated that
prices could increase in the coming weeks, albeit for a short
time period. "I am expecting a revival very early (in) January,
with possible reversal by (late) January. There is not much
overhang (and) collections are not very good, but demand for
products stinks and weather seems milder than expected," a
third source said.
"I also heard (that two European
mills) paid as much as 328, or $426, for shred delivered
(to the) plant. I believe this might sustain the E.U. market
for a good part of January and might push Turkey up," he
The source said that offers from
the United States have also firmed. "I see nothing at less than
$375 per tonne f.o.b. just to start talks. I think we
wont see sales before January now," he said.
U.S. East Coast prices for HMS
1&2 (80:20) are above $390 per tonne this week, a fifth
source said, with U.S. offers reported at $395 per tonne