NEW YORK Three new bulk
ferrous scrap sales to Turkey off the East Coast were concluded
late last week, sending prices upward after a two-week
Market participants said that
the primary driver for higher prices was a strong increase in
Mid-Atlantic prices due to scrap flow concerns.
Two U.S. exporters sold mixed
bulk cargoes to different consumers late Friday at $405 per
tonne c.i.f. Turkey for an 80/20 mix of No. 1 and No. 2 heavy
One exporter sold around 27,000
tonne of HMS 1&2 (80:20), 10,000 tonnes of shred and 5,000
tonnes of plate and structural scrap at $405, $410 and $415 per
tonne c.i.f., respectively, according to several market
sources. The second exporter sold about 32,000 tonnes of HMS
1&2 (80:20) and 13,000 tonnes of shred at $405 and $410 per
tonne c.i.f., respectively.
A little later, news broke of a
third bulk sale off the East Coast by a third exporter at $416
per tonne c.i.f. Turkey for a 42,000-tonne vessel carrying only
plate and structural scrap. Although large-volume shipments of
plate and structural have historically commanded a $15 premium
over HMS 1&2 (80:20), sources said the cargo sold at the
usual $10 to $11 premium over heavy melt.
The $405-per-tonne price for HMS
1&2 (80:20) is about $11 to $12 above the last confirmed
sales from the United States, although a slight reprieve in
bulk freight rates allowed pre-shipping prices of scrap some
As a result, AMMs
East Coast Ferrous Scrap Export
Index for HMS 1&2 (80:20) settled Monday at $382.82 per
tonne f.o.b. New York, up 3.9 percent from $368.43
Late Monday, one source said
that a U.S. exporter had sold an additional two cargoes at $407
per tonne for HMS 1&2 (80:20), indicating further strength
in export tags.
Sources in Turkey, however,
questioned how long the market can support higher tags, with
one source capping the price at $410 per tonne. "Flat product
prices in Turkey are on the top and expected to decrease. Local
U.S. scrap consumption is weak; therefore, there will be no
shortage and most of the collected cargoes will go for export,"
"There is a slight upward trend
in finished product prices in export markets. However, raw
material prices are climbing faster and as usual mills are at a
loss to catch up," a second source said. "Another setback for
Turkish mills was last weeks announcement from the United
Arab Emirates that they will now impose a 5-percent tax on
Turkish steel bar shipments. This is very bad news for Turkish
mills, and it means a loss of almost 100,000 tonnes per month
in export volume. We do not expect much activity in the next
few days, as the domestic market is very slow and product
prices are low. Demand from export markets is weak as
A third source noted that
Turkish mills had been hit by a similar tax in Egypt, but a
fourth source said that Turkeys recently approved budget
for infrastructure development could have an early
"psychological impact" on prices in Turkey. "Then actual demand
will follow suit," he said.
On the West Coast, only one bulk
ferrous scrap export sale reportedly was concluded late last
week at an average price of $417 per tonne c.i.f. China for a
cargo carrying two-thirds heavy melt and one-third shred.
That lone sale put
AMMs West Coast Ferrous Scrap Export
Index for HMS 1&2 (80:20) at $376.01 per tonne f.o.b.
Los Angeles, a 3.2-percent increase from $364.50