NEW YORK U.S. ferrous scrap export prices inched higher this week as Turkish mills continued to fill inventories.
Buyers for Turkish mills have booked at least another five cargoes this week after picking up three bulk cargoes Friday, according to market sources. This weeks sales indicated export prices of $406 to $407 per tonne c.i.f. Turkey for an 80/20 mix of No. 1 and No. 2 heavy melt scrap, up $1 to $2 from Fridays $405-per-tonne level.
U.S. East Coast exporters sold four bulk cargoes Monday, two of which were previously reported at $407 per tonne for HMS 1&2 (80:20) by one source (amm.com, Jan. 7). The other two sales were said to have been made at between $411 and $412 per tonne for about 35,000 tonnes of HMS 1&2 (80:20) and 5,000 tonnes of bonus scrap, and $406 per tonne for about 35,000 tonnes of heavy melt, 3,000 tonnes of shredded scrap and 2,000 tonnes of bonus-grade scrap.
Another bulk cargo was reported sold Tuesday at $405 per tonne for 13,500 tonnes of HMS 1&2 (80:20) and $410 per tonne for 8,500 tonnes of shredded scrap.
Of the major Turkish producers, at least four havent yet booked scrap cargoes from any region. A source in Turkey said that at least two of them are expected to trade in the coming days, with the third mills participation uncertain due to issues with an electric-arc furnace and the fourth mill expressing no interest in scrap.
"I have noticed that the mills started to lose their appetite to purchase deep- or short-sea cargoes. They did not stop, but it is for sure they began to slow down," the Turkish source said. "It does not mean that prices (will) come down. But they may want to have (a) rest for a while to watch product demand."
Sources told AMM earlier this week that it was unclear how long prices would remain at current levels, or even rise a few dollars, due to challenges related to sales of finished products.
But at least one exporter remained bullish Wednesday. "Suffice to say that we see no retreat from buyers who still remain exposed and uncovered for February deliveries since purchasing done to date represents no more than half of usual deep-sea import requirementsand probably even less than half, given that usual supply sources and availabilities, ex-Black Sea, would be more restrictive at this time of year," he said.