NEW YORK Prices for U.S.
bulk ferrous scrap exports mostly moved sideways over the past
week, with Turkey and China showing no buying interest.
Only one bulk cargo sale was
reported from the East Coast with a final destination of
Vietnam rather than Turkey, typically the sole destination for
East Coast bulk cargoes (
amm.com, Jan. 18).
Current bids from Turkish mills
are at $400 per tonne c.i.f. Turkey for an 80/20 mix of No. 1
and No. 2 heavy melt, with U.S. exporters offering the same mix
in a range of $405 to $410 per tonne, depending on port of
origin and volume, one market participant said.
"Buyers have to give a little
something so we might see trading midweek," he said.
The overall export market has
been "dead quiet," a second exporter said. "Asia (is) not
picking up (cargoes), and Turkey is holding back on coming back
into the market. I guess HMS 1&2 (80:20) should still be
around the $405 level, but no action."
A source in Turkey put offers
from the United States at the $405-per-tonne level, with some
European offers at $390 per tonne for heavy melt.
Rebar sales prices were flat and
could possibly be under pressure, causing the current impasse,
the source said.
"There has been no East Coast
activity that we know of in the last five to six working days,"
a fourth source said. "Turks are trying to take the price down
by $5 but (are) finding much resistance. Additionally, we are
seeing the charter market beginning to firm up. Not many
vessels (are) quoting for relatively prompt positions."
With no bulk cargo sales to
Turkey and just one shipment to Vietnam at a price of about
$397 per tonne c.i.f. on an HMS 1&2 (80:20) basis, weekly
f.o.b. values on the East Coast slipped about 50 cents per
AMMs East Coast
Ferrous Scrap Export
Index for HMS 1&2 (80:20) settled at $383.94 per tonne
f.o.b. New York on Jan. 22, down 0.1 percent from $384.47 per
tonne last week.
On the West Coast, market
sources confirmed only one bulk cargo sale from California to
The lone sale sent
AMMS West Coast Ferrous Scrap Export
Index for HMS 1&2 (80:20) a tad higher to $388.90 per
tonne f.o.b. Los Angeles, a 0.3-percent increase from the last
weeks $387.77 per tonne.
Uncertainty as to where the next
West Coast bulk sale would trade stemmed from a recent slide in
containerized scrap export prices (
amm.com, Jan. 18), sources said.
"Nobody has repealed the law of
supply and demand. Stingy scrap availability seems to have
established a floor, and tepid mill sales seem to have
established a ceiling," one West Coast source said.
"Prices are dropping a bit more
on the West Coast," another source added.
"China covered most cargoes
before Chinese New Year. Taiwan and Korea dropped prices
internally as import traders had to sell their long positions
into a falling market and the mills bought it cheaper," he
said. "Tokyo raised prices due to a weaker yen, and thus new
export opportunities for Japanese finished product. So unlike
other months, Japanese internal scrap is up and most of the
other Asian markets down."