NEW YORK U.S. ferrous
scrap export prices for bulk shipments to Turkey logged big
gains over the past few days as mills returned to replenish
At least four bulk cargo sales
out of East and Gulf coast ports were reported by different
market participants in a range of $400 to $405 per tonne c.i.f.
Turkey for an 80/20 mix of No. 1 and No. 2 heavy melt.
The sales were booked over the
past few days, with a single exporter accounting for three of
the four mixed cargoes sold, sources said. Transacted prices
represent an increase of about $10 per tonne from the previous
round of U.S. sales to Turkey during the first week of February
amm.com, Feb. 7).
One Turkish source said a fifth
sale had occurred Wednesday at $401 per tonne c.i.f. Turkey for
HMS 1&2 (80:20) from the East Coast, but other sources
didnt confirm the deal.
This weeks $10-a-tonne
jump in export prices appears to have been partially driven by
stronger domestic market sentiment, sources said.
The pricing rise may also have
been triggered by fresh orders for finished products in Turkey
and shifting currency markets, another source in Turkey
"I guess a reason behind this
increase is new business. Some mills in Turkey always work with
less booking quantity, and when new sales are made by mills,
they book additional quantity. So demand comes suddenly when
booked mills take a position," he said, adding that the
increase could also be tied to changes in the euro vs. the U.S.
However, few market players were
willing to predict whether prices will hold at this level or
possibly move again in either direction, citing some mixed
"These prices represent a $10
increase in prices. For the moment, there is resistance from
mills to pay higher levels than these recent bookings," one
U.S. exporter said.
"The last sale we heard today
was a U.S. sale at $401 per tonne for HMS1&2 (80:20)," the
first source in Turkey said. "People have stopped buying and
the rebar market is not good. (One broker) is still knocking on
doors to sell a cargo they bought from a U.S. East Coast
exporter last week. We hear rumors that the U.S. local market
is expecting to see January (scrap price) levels in March,
which means over $410 for Turkey. But there is no Turkish buyer
ready to accept these levels. Some are expecting a
A second U.S. source, however,
speculated that there could be further strengthening.
"It looks like scrap prices are heading back to January
levels for both export and domestic. One theme continues to
dictate the scrap market: lack of supply. Expect a brisk buying
event for domestic mills early next week," he said.