NEW YORK The result of a
bulk scrap tender released March 25 by a Turkish mill is
expected to set the tone for this weeks U.S. and European
export prices to the worlds largest scrap-importing
U.S. exports to Turkey all but
dried up about two weeks ago after Turkish mills stormed
several markets to cover inventory positions for April (
amm.com, March 18).
At the time, a weaker euro and
stronger U.S. domestic market had Turkish steelmakers turning
to British, European and Black Sea shores for a majority of
On March 25, several market
participants said conditions hadnt changed much since,
with U.S. offers reportedly at around $403 to $405 per tonne
c.i.f. Turkey last week for an 80/20 mix of No. 1 and No. 2
heavy melt and Turkish mill bids at anywhere between $395 to
$400 per tonne, according to a scrap buyer for one Turkish
But sources speculated that
Turkish mills will need to step in at some point this week or
next week, at the latest, to secure scrap for late-April and
early-May delivery, with the results of Mondays tender
expected to set the tone for that new round of buys.
"(On Monday one Turkish mill)
launched a tender and we are awaiting the results," one
European exporter said March 25. "Weather conditions remain
very cold and disruptive for scrap collection; therefore, it
seems that Black Sea suppliers are not selling easily on lower
levels of $380 per tonne c.f.r., which (the) Turkish are
expecting them to do. Let us see this week if (the) U.S. market
will drop below $400 or not."
A buyer for a second Turkish
producer said he expects this week to be a quiet one.
"I am expecting a quiet week.
Sales on (the) product side are extremely slow. On the other
hand, everybody is waiting for (the) price of scrap to get
lower. Now (the) euro is getting cheaper. Spring is approaching
although weather (is) still cold but will warm up soon. ...
Under these circumstances prices should get softer," he
A European sale into Turkey last
week at less than $400 per tonne for HMS 1&2 (80:20) and a
$10-per-gross-ton drop in buying prices at U.S. East Coast
export docks (
amm.com, March 20) also suggests a possible
weakening in prices, one U.S. exporter said.
Turkish mills have remained
active in the Commonwealth of Independent States (CIS) region,
with many reporting sales from Russia and Romania in a $376- to
$380-per-tonne range for A3 scrap, a regional heavy-melt grade,
The absence of any reported U.S.
sales to Turkey over the past week left AMMs
weekly East Coast Ferrous Scrap Export
Index for HMS 1&2 (80:20) unchanged March 25 at $375.58
per tonne f.o.b. New York.
Meanwhile, bulk export activity
returned to the West Coast after a brief lull, with one
exporter booking two bulk cargo sales to China this past week
at $420 per tonne c.i.f. for HMS 1&2 (80:20).
The sales pushed
AMMs West Coast Ferrous Scrap Export
Index for HMS 1&2 (80:20) up slightly to $382 per tonne
f.o.b. Los Angeles on March 25, up 0.3 percent from $380.83 per