NEW YORK U.S. ferrous
scrap export prices for bulk shipments trended sideways over
the past week as thin demand offered little price support.
A big return to the scrap market
by Turkish mills did little for East Coast exporters, who
booked just two of 11 bulk sales to Turkey this past week, with
European exporters picking up most of the business.
Market participants said a
strong dollarwhich makes European scrap more
attractiveand a relatively strong domestic market for
scrap meant U.S. offers failed to trigger much interest from
U.S. offers trended anywhere
between $405 and $410 per tonne c.i.f. Turkey, but the two
sales made in the middle of last week concluded at prices
slightly lower than the offer levels.
A smaller vessel carrying up to
30,000 tonnes traded at an average price of $406 per tonne for
20,000 tonnes of an 80/20 mix of No. 1 and No. 2 heavy melt and
10,000 tonnes of shred, sources said.
A larger 40,000-tonne vessel was
sold by a broker to a Turkish mill at $404 per tonne for 35,000
of HMS 1&2 (90:10) and $412 for 5,000 tonnes of plate and
The sales prices were slightly
above the last East Coast sale booked at $401 per tonne for HMS
1&2 (80:20) at the end of February, but higher freight
costs negated the increase for scrap valued on an f.o.b. basis,
according to several sources.
As a result,
AMMs weekly East Coast Ferrous Scrap Export
Index settled March 18 at $375.58 per tonne f.o.b. New
York, down just 18 cents from the previous week.
"The market here didnt
change a lot," said one source in Turkey. "We are not seeing
any demand (for finished product) nowadays. As well as the
domestic market being slow, export markets are not doing any
good, either. It seems like Turkish mills will have a hard time
increasing product prices."
On the West Coast, sources
reported only one bulk sale, which concluded early last week to
South Korea at around $425 per tonne c.i.f. on an HMS 1&2
(80:20) basis. However, bids from Chinese and Korean mills have
since dropped by $10 to $15 per tonne, creating a fresh
stalemate in exports last week (
amm.com, March 15).
"There is little interest right
now as the rebar price has dropped and there is adequate scrap
in the pipeline," said one West Coast exporter.
A source in China said bids were
down significantly for iron ore and scrap.
"I think the market is searching
for new balance," he said. "We also heard there will be no more
business for Korean buyers."
s West Coast Ferrous Scrap Export Index settled
Monday at $380.83 per tonne f.o.b. Los Angeles, up 35 cents
from $380.48 per tonne the previous week.