NEW YORK A bulk
ferrous scrap export sale from the East Coast to Turkey late
last week supported previous speculation that prices could
A flurry of cargo
sales from Europe to Turkey at improving prices early last week
had lifted U.S. hopes that three months of declining prices
might end (
amm.com, June 13).
On June 14, one
exporter sold 30,000 tonnes of No. 1 and No. 2 heavy melt
(90:10) and shredded scrap at an average price of $349 per
tonne c.i.f. Turkey. The price is an improvement of about $2
per tonne over pre-freight prices of HMS 1&2 (80:20) for
similar vessel sizes, AMM understands.
The cargo reportedly
will comprise of 18,000 tonnes of HMS 1&2 (90:10) and
12,000 tonnes of shred, with a freight cost higher than current
freight rates for vessels of 40,000 tonnes or more.
are uncertain if the sale represents a strengthening market or
one that has "bottomed," with the next 40,000-tonne-or-more
sale expected to help better gauge the market trend.
The lone East Coast
sale sent AMMs weekly
East Coast Ferrous Scrap Export Index a touch above
previous levels Monday to $315.75 per tonne f.o.b. New York, up
0.6 percent from $313.84 a week earlier.
On the West Coast,
U.S. offers have ranged between $360 and $365 per tonne for HMS
1&2 (80:20) delivered to different Asian countries, while
bids from South Korean mills were said to be at around $350 per
tonne c.i.f. South Korea.
Asian consumers have
been relatively quiet, with bid and offer ranges pointing to
slightly negative sentiment, market participants said.
"Much of Southeast
Asia is preparing for electrical cutbacks on top of an
already-weak market," one source said. "I personally dont
believe many of the analysts who imply that recovery is around
the corner. I dont see it at all. There needs to be
substantial demand for new steel, and its just not
A second source said
that a current bid-offer range of $350 to $360 per tonne c.i.f.
South Korea indicates that the East Asian market is poised to
slip further, with Korean steelmakers expected to cut output in
July and August. Korean mills are unlikely to secure U.S. scrap
at $350 per tonne, the source said.
The current bid-offer
levels pushed AMMs
West Coast Ferrous Scrap Export Index to $328.50 per tonne
f.o.b. Los Angeles, down 0.7 percent from $330.71