NEW YORK U.S. West Coast
bulk export prices jumped more than $11 per tonne in the past
week as demand from East Asia continued to drive prices in the
Market participants expect more
interest from buyers in China and Taiwan this week as mills
look to fill inventories before the Chinese New Year holiday
Sources said that a U.S.
exporter had sold a bulk cargo of shred to a Chinese mill last
week at $430 per tonne c.i.f. The lone West Coast sale put
West Coast Ferrous Scrap Export Index at $387.77 per tonne
f.o.b. Los Angeles for an 80/20 mix of No. 1 and No. 2 heavy
melt, up 3.1 percent from $376.01 previously.
A mill in Taiwan reportedly
booked a 20,000-tonne cargo out of Hawaii last week at $428 per
tonne for HMS 1&2 (80:20).
The West Coast ferrous scrap
export market strengthened over the past 10 days as the return
of Chinese interest to U.S. shores buoyed prices for iron ore
and some finished products (
amm.com, Jan. 8).
One source predicted that U.S.
exporters would be active on the West Coast but not the East
Coast this week after Turkish buyers retreated following a
flurry of early-month trading, a reversal of recent market
trends. "(Im) not sure what the action will be this week
(on the East Coast, but) the West Coast-Asia market will get a
lot of attention," he said.
Market players in the United
States and Turkey said there was little visibility on when
high-volume trading will resume.
"My guess is that Turkey is done
for the near term, and unless they are able to pick off some
cheap supplies (they) will now put the brakes on in an effort
to cool the market," one U.S. exporter said. "(The) domestic
market is still holding firm, but (its) not sufficient to
absorb export overhang. Far East Asia is relatively strong but
not even close to what Turkey was paying, and that leaves East
Coast suppliers with few options. At the same time, I am
hearing European suppliers are pulling offers as a result of
A source in Turkey said that
Turkish interest this week would be predicated on how rebar
sales materialize. "I am expecting the market to be silent
(until) Thursday, and it will be focused on rebar sales," he
said. "If they can sell rebar, they may start to buy scrap on
Thursday. If not, the market will be silent this week."
A third source suggested that
Turkish mills may return to the market sooner than expected to
fill inventories. "February is not yet covered, and January
barely was. I think they are just back from holidays and things
might change by the middle to the end of the week," he said.
"Some are of the opinion that (the) market will continue to be
strong as the demand for scrap is still there. Others
opinion is that the market may soften if Turkish mills are not
able to sell at the new levels. I am of the opinion that we
have seen pre-holiday purchases and the bulk is yet to
Sources said there had been no
fresh U.S. sales to Turkey after the five bulk cargoes sold
early last week (
amm.com, Jan. 9). Those sales offered slight
strength to AMMs
East Coast Ferrous Scrap Export Index, which settled Monday
at $384.47 per tonne f.o.b. New York for HMS 1&2 (80:20),
up 0.4 percent from $382.82 previously.
This week, market participants
said only one Turkish mill had booked a scrap cargo out of the
Baltic region at a composite price of $410 per tonne c.i.f. for
HMS 1&2 (90:10).