MONTERREY, Mexico Thin demand from Turkey for East Coast
ferrous scrap and sustained demand from Asia for West Coast
scrap sent export prices on the two coasts in opposite
A nearly $7-per-tonne decline in East Coast bulk export tags
combined with an almost $3-per-tonne increase in West Coast
export prices to restore the more than $10 premium West Coast
exporters enjoyed over the East Coast many months ago.
Two bulk cargo sales were reportedly booked off the West Coast
this past week as China and Vietnam each picked up a cargo.
Market participants said a U.S. exporter sold a 35,000-tonne
cargo to China at about $426 per tonne c.i.f. China for an
80/20 mix of No. 1 and No. 2 heavy melt. A second cargo of
around 30,000 tonnes reportedly was sold to Vietnam at $10 per
tonne above the China prices.
The two sales gave some upward support to AMMs
West Coast Ferrous Scrap Export Index
(80:20), which settled Monday at $391.81 per tonne f.o.b. Los
Angeles, up 0.7 percent from $388.90 previously.
South Korean consumers, normally the most active buyers of West
Coast scrap, remain conspicuously absent from the bulk market,
Meanwhile, only two East Coast bulk cargoes were reportedly
sold to Turkey last weekboth on Jan. 23 at identical
prices to the same Turkish mill but from two different
amm.com, Jan. 23
Both sales were concluded at $401 per tonne c.i.f. Turkey for
HMS 1&2 (80:20), with shredded selling at a $5 premium to
heavy melt and bonus scrap selling at a $10 premium. The sales
were between $4 and $6 lower than transactions earlier in the
month, but a slight strengthening in bulk freight rates caused
f.o.b. values to decline a tad further.
East Coast Ferrous Scrap Export Index
for HMS 1&2
(80:20) settled Monday at $377.10 per tonne f.o.b. New York,
down 1.8 percent from $383.94 previously.
One exporter speculated that East Coast prices could be under
more pressure following a late sale from Britain on Jan. 25.
Today we heard that late last week (a Turkish mill)
booked an HMS 80:20 cargo from the U.K. at $390 (per tonne).
This represents a maximum of $395 for U.S. HMS 80:20, which is
another $5 to $6 down from previous levels, he said.
This week is important. Mills were generally expected to
restart booking cargoes for late February, (early) March
shipment in this period. But given Turkish mills are having
difficulty selling finished products, a couple of mills
shutting down for two to four weeks for maintenance and some
running in lower capacities, I think there is slim chance for
Turkish mills to start buying this week. The more they delay,
the more they will put pressure on the suppliers, he
Other sources said they are still uncertain on where prices
could head this week.