NEW YORK The ferrous
scrap export market was flooded with rumors of four bulk sales
to Turkey from the United States and Europe, but only one sale
out of Western Europe was confirmed.
Most market participants refused
to accept any of the rumored deals as indicative of the next
price level, even though the rumors universally pointed to
From the United States, rumors
are that an exporter sold either one or two cargoes to a single
mill in Turkey at a price level of anywhere between $350 to
$355 per tonne c.i.f. for an 80/20 mix of No. 1 and No. 2 heavy
melt. More sources reported they had heard the rumored price
near the middle of the range, but none had a confirmation from
either the mill or the seller.
One U.S. exporter ruled out the
possibility of U.S. export tags dropping to $350 per tonne for
HMS 1&2 (80:20) and said that all the rumored prices were
Meanwhile, an exporter in Europe
said that there is also talk of a second U.S.
exporterwhich typically ships up to 30,000-tonne
cargoesconcluding a sale to Turkey at $355 per tonne for
HMS 1&2 (80:20), with no confirmations.
A market source told
AMM that a U.S. exporter had offered HMS 1&2
(80:20) at $357 per tonne but received no bids. "They were
asked to hold the offer price until Monday, but the whole world
could change by then," he said.
Contrary to market rumors, which
appear to be aimed at driving down prices, the U.S. offer
indicates an early attempt to arrest the recent decline in
export prices by at least ensuring that the market has
"bottomed," the market source added.
Export markets were inundated
with rumors of sales from Europe, with talk of one cargo sale
of either HMS 1&2 (70:30) or HMS 1&2 (75:25) at $333
per tonne, although a source in Turkey said that the deal, if
it occurred, was likely concluded last week since export sales
have been finalized below that level.
There were also rumors of a sale
from the United Kingdom to Turkey at $350 per tonne for HMS
1&2 (80:20), but only one sale from Western Europe has been
confirmed at a price level of $325 per tonne for HMS 1&2
(75:25), market sources say. The sale would represent a
$15-per-tonne price decline from a week ago for the exporter to
the same consumer.
Although market participants are
uncertain of whether price levels will hold at the
last-reported sales levels of $352 to $355 per tonne for
U.S.-origin HMS 1&2 (80:20), some said that buyers in
Turkey are pointing to weak rebar prices to further soften
Turkeys domestic sales
prices for rebar steel are varying by region between $585 and
$590 per tonne, with export prices at $570 for small volumes
and $560 for large volumes, according to sources in Turkey.