NEW YORK U.S.
bulk ferrous scrap export sales recorded mixed results last
week as West Coast exporters pushed for more value while an
East Coast sale softened prices.
Only two bulk cargoes
were sold by U.S. exporters to Turkey last week as Turkish
buyers spent the better part of the week celebrating a
According to market
participants, one exporter sold a mixed cargo at $377.50 per
tonne c.i.f. Turkey for 27,000 tonnes of an 80/20 mix of No. 1
and No. 2 heavy melt, $382.50 per tonne for 15,000 tonnes of
shred and $387.50 per tonne for 3,000 tonnes of plate and
structural scraprelatively unchanged on a pre-shipment
value from the same exporters previous sale a week ago
from the Gulf Coast.
However, a 30,000-tonne
bulk shipment from a different exporter was about $4 per tonne
lower than the last sale of the same volume, indicating that
prices could come under pressure. The cargo reportedly went for
$378 per tonne for 8,000 tonnes of HMS 1&2 (80:20) and $383
per tonne for 12,000 tonnes of shred.
Despite the lower
prices on a delivered basis, pre-shipment values on the East
Coast slipped only marginally from a week ago due a large
difference in freight rates for the two exporters shipping
different volumes and one needing to load material from two
ports to complete the sale.
As a result,
East Coast Ferrous Scrap Export Index settled Aug. 12 at
$349.40 per tonne f.o.b. New York, just 23 cents lower than a
prevails over the West Coast market due to rumors of possible
bulk sales to South Korea.
Sources claim that one
Korean consumer intentionally released information pointing to
lower-priced sales of $363 per tonne delivered for heavy melt,
which some said is at least $5 per tonne below actual market
The Korean consumer
reportedly booked three bulk cargoes from West Coast exporters,
who also were rumored to be negotiating with a second mill in
Korea and one in Japan.
One market participant
said a deal had been concluded with another Korean mill at $365
per tonne on a heavy melt price basis, while a buyer for a
fourth mill in Korea said he had received U.S. offers of $375
per tonne for HMS 1&2 (80:20).
The buyer suggested
that currency markets had contributed to a U.S. push for higher
prices. "The Japanese yen is getting strong and (Japanese scrap
exporters) offer price is around $365 per tonne now. The
market price is keeping strong in Japan, so Korean buyers are
looking for U.S. bulk scrap now," he said.
West Coast Ferrous Scrap Export Index settled Aug. 12 at
$334.94 per tonne f.o.b. Los Angeles, up 73 cents from a week