NEW YORK Ferrous scrap export prices for bulk shipments have gained almost $10 per tonne after four sales to Turkey capped another positive week for exporters.
After gaining about $3 per tonne a week ago, four bulk sales by two exporters between July 3 and 5 indicate pre-freight prices increased about $10 per tonne.
Market participants said July 1 that U.S. exporters raised offer prices to Turkish mills to around $365 per tonne c.i.f. Turkey for an 80/20 mix of No. 1 and No. 2 heavy melt, after being forced to lift buying prices at their docks due to a strengthening domestic market.
Although several mills in Turkey opted to book seven European cargoes this past week, three different mills reportedly fixed cargoes from a single U.S. exporter before July 5.
All three cargoes were reportedly sold off the East Coast, with two cargoes trading July 3 at $363 per tonne c.i.f. Turkey for HMS 1&2 (80:20), $368 per tonne for shred and $373 for plate and structural scrap. The two cargoes were booked by mills in southeastern Turkey, sources said, with the transaction indicating a $4 per tonne increase from the last East Coast sale.
A third cargo was booked by a mill in western Turkey July 4 at $364.50 per tonne c.i.f. Turkey for HMS 1&2 (80:20) and will attract lower freight indicating an almost $3 per tonne increase in prices in a single days trading, one source said.
Late July 4 or early July 5, a second exporter reportedly sold a cargo comprising about 22,000 HMS 1&2 (90:10) and 18,000 plate and structural scrap at a composite price of $375 per tonne. The sale price suggests a delivered HMS 1&2 (80:20) value of between $368 and $369 per tonne, marking a $3 per tonne increase from the prior sale to West Turkey and a $10 to $11 increase from prior-week price levels.
Several market participants suggested prices are at or near their short-term high as deliveries for cargoes booked by Turkey over the past 10 days have already entered into early September.
"I do think we are close to the top. I expect the market to go quiet shortly," said one European exporter, while a U.S. trader said he expects prices to "be range bound for a bit."