NEW YORK A
strike at a steel mill in Egypt has benefited at least one
North American scrap exporter after a vessel carrying 50,000
tonnes of ferrous scrap was diverted to a mill in Turkey for a
In a deal booked Aug.
20, the cargo carrying 33,000 tonnes of shred, 13,500 tonnes of
No. 1 heavy melt, 1,500 tonnes of plate and structural and
1,000 tonnes of cast iron scrap was sold for an average price
of $385 per tonne c.f.r. Turkey, according to market
The vessel was just
three to four days away from arriving at Adabiya port in Egypt
before the North American exporter was informed of the
buyers inability to accept the vessel, according to a
However, with demand
still strong from mills in nearby Turkey, the exporter was able
to conclude a sale at prices significantly higher than the
prices fixed for the sale to Egypt, he added.
"For metal thats
already on the water, this market worked in his favor. He got a
better rate from Turkey and is probably smiling all the way to
the bank," the source said.
While some sources
believe the vessel was diverted from Egypt due to political
turmoil in the region, a source familiar with the sale said a
strike at the mill the cargo was headed to caused the seller to
offer to swap cargoes.
"There was no point in
the Egyptian mill paying demurrage so a swap was offered. This
cargo was sold to Turkey while the seller will deliver the
Egyptian cargo later when the strike is over," he said.
A third source, based
in Turkey, was among those who felt the vessel was diverted due
to the unrest in Egypt.
"(It was) resold and
directed to (a Turkish mill). The vessel is expected to arrive
(in Turkey) within a week," he said.
In addition to the
last-minute sale, market participants said a bulk cargo sale
from Scandinavia and another from the United Kingdom concluded
Aug. 20 at prices relatively unchanged from the prior
The Scandinavian cargo
reportedly sold at $382 per tonne for 25,000 tonnes of A3 scrap
and $384 per tonne for 16,000 tonnes of shred. A 20,000-tonne
cargo from the United Kingdom was sold at $370 per tonne for an
80/20 mix of No. 1 and No. 2 heavy melt, although some sources
suggested the mix was closer to 75:25 or 70:30 HMS 1&2.
Turkish mills have
booked slightly more than 70 bulk cargoes since the start of
July and demand could likely wane in the coming days, according
to other sources.
"Since the beginning
of July it has been more than 70 cargoes booked by Turkish
mills. Part of this was to cover short positions and the rest
to balance their stock levels. Now it looks like their appetite
for scrap is lesser," one scrap trader said. "They are not able
to get their desired price levels for finished products as well
and the export sales demand is low. On the other hand, scrap
suppliers also do not have much scrap available; therefore, we
may see stabilization in scrap prices with less demand from
Turkish mills for a while."
The last bulk sale out
of the United States was concluded Aug. 16 at a price basis of
$378.50 per tonne for HMS 1&2 (80:20), according to several
sources, indicating prices have held within a $5 range since
the last week of July.