NEW YORK U.S. ferrous
scrap bulk export prices trended in different directions this
past week as tags for West Coast sales dropped while continued
inactivity from Turkey left East Coast prices unchanged.
East Coast export prices to
Turkey have been flat for more than two weeks as mill buyers
have shown no interest in U.S. cargoes. As a result,
AMMs East Coast
Ferrous Scrap Export Index for an 80/20 mix of No. 1 and
No. 2 heavy melt remained at $375.58 per tonne f.o.b. New York
But market participants said
they expect a change this week as Turkish mills look to cover
scrap inventories for the end of April and into May.
A buyer for one Turkish producer
said export prices to Turkey could drop from previous levels of
$401 to $405 per tonne c.i.f. Turkey for an 80/20 mix of No. 1
and No. 2 heavy melt. "Buyers are trying for $390 to $395 per
tonne for U.S. HMS 1&2 (80:20), but sellers insist on $400.
Expectations are between $395 and $400 for a potential deal,"
One North American exporter said
anticipated weakness in the U.S. domestic market could result
in weaker export tags. "I think the American market now looks
like it will be down $20 (per tonne), so I expect export prices
to be somewhere around $395 to $400 for shred this week," he
Asked if exporters would fight
such declines, citing margins, the North American exporter said
prices would be determined by demand. "I dont think it
has to do with margins. It has more to do with what they can
afford to pay and what the real volumes are," he said. "Are
people supposed to guarantee you make money?"
A second U.S. source said
exporters could get some reprieve from bulk freight rates,
which could be poised for a drop in the near term. "I expect to
see a drop in the handysize (vessel) market over the next
couple of weeks with so many ballasters popping up," he
On the West Coast, three bulk
cargo sales reportedly were booked in the past week after
exporters accepted a decline in prices, bringing some export
action back to a region waiting for market conditions to
improve in Far East Asia.
Two bulk vessels carrying a mix
of heavy melt and shred to China were reportedly booked at a
composite price of $415 per tonne c.i.f. China, while a cargo
to South Korea traded at $415 per tonne c.i.f. Korea for HMS
1&2 (80:20) (
amm.com, March 29).
The sales put
AMMs West Coast
Ferrous Scrap Export Index for HMS 1&2 (80:20) at
$372.63 per tonne f.o.b. Los Angeles on Monday, down 2.5
percent from $382 the previous week.