NEW YORK Bulk ferrous scrap exports to Turkey jumped about $10 per tonne following a fresh sale in the past week.
Market participants 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.