ISTANBUL Ferrous scrap export prices rebounded Feb. 7 after two exporters were able to stop a recent decline and set a new level for prices to Turkey.
Market participants said U.S. exporters sold three bulk cargoes to Turkey Feb. 6, with two cargoes exceeding 40,000 tonnes and one reportedly just shy of 30,000 tonnes. All three cargoes traded at close to $390 per tonne c.i.f. Turkey for an 80/20 mix of No. 1 and No. 2 heavy melt, sources said.
A single exporter sold the larger cargoes to different consumers. One booking for about 44,000 tonnes was at $389.50 per tonne for 24,000 tonnes of HMS 1&2 (80:20), $394.50 for shred and $399.50 for plate and structural scrap. The exporter sold a second cargo of a similar mix at $1.50 above those prices, sources said.
A third cargo of about 28,000 tonnes split evenly between HMS 1&2 (80:20) and shred was sold by a second exporter at a composite price of $391 per tonne.
The three sales put East Coast HMS 1&2 (80:20) export prices at between $388.50 and $391 per tonne, which appeared to be a few dollars above two sales recorded the previous dayone cargo from Puerto Rico, which sold at a composite price of $387 per tonne for heavy melt and shred, and an East Coast cargo that sold at a composite price of $391 per tonne for HMS 1&2 (90:10), shred and bonus scrap (amm.com, Feb. 6).
It appears the United States is trying to make $390 per tonne the base price for HMS 1&2 (80:20), some sources said.
"My personal feeling is it will stabilize around $390," said one source. "Now, if the euro weakens, with domestic Europe starting to show some stabilization, the E.U. might start looking at Turkey. With additional volumes ex-E.U./Baltic coming in, Turkey will probably carry on putting pressure on U.S. exports, which are not getting support from the domestic market."
Rebar sales are getting stronger in Turkey, he said. "If the trend carries on, they might become scrap-hungry to produce more, which will balance the previous scenario."
A source in Turkey said buyers would not allow prices to increase any further. "People need to buy but will not allow increases. They will buy one series of cargoes and wait for a while," he said.