NEW YORK Bulk
ferrous scrap exports to Turkey jumped about $10 per tonne
following a fresh sale in the past week.
said a single bulk cargo of about 40,000 tonnes of an 80/20 mix
of No. 1 and No. 2 heavy melt was sold to a steel mill in
southeastern Turkey at $356 per tonne c.i.f. Turkey.
Due to its remote
location and cargo composition, the shipment is expected to
attract additional freight costs and thus represents an
increase of nearly $10 from the last U.S. sale to Turkey booked
a week earlier (
amm.com, June 17), sources said.
Several exporters said
they were bullish on export prices to Turkey, citing an
apparent increase in demand for finished product from Turkish
mills and a struggle to bring U.S. scrap into export docks at
prevailing depressed price levels.
"I think the price
will continue to move up," one market participant said.
"Collection is not keeping up with demand."
A second source called
it a "resurgence in pricing developments."
"The cost push on
scrap prices has already led the Turks to push up ... their
pricing for rebar, which appears to be gaining traction," he
said. "This tendency would be reinforcing sustainability of
further cost push." The source added that "the breaking or good
news for the Turks out of Egypt should also be supportive for
pricing tendency," referring to reports of an improving
political situation in Egypt.
A source in Turkey,
however, was not as bullish. "Prices will not go down from
here," he said. "There is demand, but it may not go too high. A
small increase and stabilization is my expectation."
Sources are uncertain
of how much higher U.S. prices to Turkey can climb, with some
reporting that U.S. offers were at or above $365 per tonne for
HMS 1&2 (80:20) in the past week. A fourth source said
there were market rumors of a U.S. offer at $380 per tonne,
although none of the other participants AMM contacted
had heard that.
A fifth source said
that the current uptick in prices to Turkey appears to be
regional, with only mills in southeast Turkey concluding deals
at higher prices. "So far, west Turkey is apparently resisting
(the price increases)," he said.