NEW YORK U.S.
bulk scrap export activity continues to diverge off the East
and West coasts, with West Coast exporters facing thin Asian
demand despite a softening price environment and East Coast
exporters reporting a flurry of recent activity, including
three cargoes booked this past week alone.
participants said not one bulk cargo of ferrous scrap was sold
off the West Coast this past week, although a few sources
reported rumors of an unconfirmed sale to Vietnam.
Bulk offer prices to
consumers in Malaysia, Vietnam, Indonesia and Taiwan dropped at
least $5 per tonne last week, according to various market
Current offer levels
for scrap delivered to Malaysia are at around $360 to $361 per
tonne c.i.f. for an 80/20 mix of No. 1 and No. 2 heavy melt,
sources said. Delivered prices to Vietnam are trending a bit
below that level due to lower freight costs, AMM
As a result,
West Coast Ferrous Scrap Export Index for HMS 1&2
(80:20) settled July 1 at $326.83 per tonne f.o.b. Los Angeles,
down 1.4 percent from $331.47 per tonne a week ago.
In contrast, East
Coast exporters booked three cargo sales to Turkey this past
week, with one cargo negotiated at prices well below the
Two exporters sold
cargoes of about 40,000 tonnes or more at about $359 per tonne
c.i.f. Turkey for HMS 1&2 (80:20). However, sources said
one cargo was booked for prompt delivery in July while the
other was booked for mid- to late-August delivery.
Early last week, a third exporter sold a smaller cargo of about
28,000 tonnes of HMS 1&2 (90:10) and shredded scrap at a
composite price of $355 per tonne c.i.f. Turkey, indicating
that it had accepted prices well below levels achieved by other
"Exporters will want
to get a feel for how strong domestic is going to be before
selling to Turkey for August deliveries," one source said of
this weeks market.
A buyer for a steel
producer in Turkey said last weeks slight uptick in
export prices off the East Coast was driven by mills short on
"It is said that
mills stock levels were very low. In my opinion,
producers that need prompt shipments will pay higher prices. We
could see some higher-priced sales for July, but after that,
(the) market can get weaker," he said.
One European exporter
estimated that at least 10 to 15 bulk cargoes remain to be sold
into Turkey for August shipment. "The market will remain very
firm and speculated due to the vacation period and low stocks
in scrapyards and mills," he said.
East Coast Ferrous Scrap Export Index for HMS 1&2
(80:20) settled July 1 at $328.86 per tonne f.o.b. New York, up
nearly 1 percent from $325.74 per tonne a week earlier.