NEW YORK East
Coast export prices for bulk ferrous scrap shipments inched
slightly higher this past week after two sales to Turkey were
concluded above previous price levels.
Two U.S. exporters
sold bulk cargoes to different Turkish mills at similar price
levels in recent days. One concluded on June 28, a day that
also saw at least five other bulk sales from Europe and Russia
as Turkish mills looked to secure inventory before a long
religious holiday, several sources said.
One U.S. exporter sold
a mixed bulk cargo June 28 at $359 per tonne c.i.f. Turkey for
an 80:20 mix of No. 1 and No. 2 heavy melt, $364 for shred, and
$369 for plate and structural scrap, sources said.
The sale followed a
June 25 sale by a different exporter for a full 40,000-tonne
cargo of HMS 1&2 (80:20) at $359 per tonne.
These sales represent
a $3-per-tonne increase in export prices to Turkey after the
last bulk sale to Turkey was concluded at $356 per tonne c.i.f.
Turkey in mid-June (
amm.com, June 21).
Buyers in Turkey and
exporters in the United States and Europe told AMM
that they expect prices to strengthen even more in the next
round of trades.
"Prices might go up a
little more," a buyer for one Turkish steel producer said.
"(Turkish) mills are buying for August now, so there wont
be too many sales during the next 10 days."
One U.S. exporter said
prices should already be slightly higher than the two bulk
sales that concluded this past week at $359 given market
"Personally I thought
prices would be a little higher, but based on collection prices
(at export docks), there is margin in it for these guys," he
said. "I also think there might be some buying during Ramadan
just like last year."
One European exporter
said that a bulk sale from the United Kingdom at $359 per tonne
for HMS 1&2 (80:20) late July 28 means that U.S. prices are
likely to rise further, since U.S. heavy melt usually trades at
a premium to most European heavy melt.
"We have just sold (a)
cargo of HMS 1&2 (80:20) ex-United Kingdom to (an) end-user
in (the Turkish city of) Izmir at (a price) level of $359 per
tonne, and we still have inquiries for end-July arrivals, which
(we are) finding from our supply availability perspective
difficult to comply with even though (we are) being enticed by
bids that make me regret having made the earlier mentioned
sale," he said.
"Ramadan starts on
July 8 to 9 and ends 30 days thereafter," he noted. "From (the)
perspective of supply availabilities, the delivery of cargoes
would be for early August arrivalswhen Ramadan ends. So
frankly, (I) do not understand the fixation on Ramadan as
having a potentially adverse impact on the market."
In his view, scrap prices rallied because of supply-driven
fundamentals and will continue to be sustainable over the
summer period, during which time supply tightness will be a
continuing phenomenon buttressed by a robust U.S. domestic
market, he added.