NEW YORK U.S. export prices for bulk shipments to Turkey slipped a few dollars this past week after almost two weeks of inactivity as Turkish mills push for lower prices.
One U.S. exporter sold two bulk cargoes off the East Coast at levels indicating a $3-per-tonne drop in delivered values.
The sales were reportedly booked Sept. 24 to Sept. 25, with one bulk cargo carrying only shredded scrap transacted at $368 per tonne c.i.f. Turkey and a second carrying a mix of heavy melt and shred booked at similar price levels.
Sources said the 80/20 mix of No. 1 and No. 2 heavy melt scrap in the second cargo sold at $363 per tonne c.i.f. Turkey, indicating a $3-per-tonne drop from the last U.S. bulk sale to the country on Sept. 13, which sold at $366 per tonne (amm.com, Sept. 16).
The second cargo was sold via a tender to a Turkish mill, which reportedly also booked a separate bulk cargo of only bonus scrap material at $378 per tonne from a European supplier.
Market participants in Turkey and the United States said they expect heavy melt to trade within a few dollars of the new $363 price level for HMS 1&2 (80:20) as Turkish mills attempt to regain some margins lost in previous months.
"I think Turkish mills will push for $360 per tonne as rebar export values are now at $570 to $575 per tonne f.o.b. Turkey," one trader said.
Meanwhile, recent bulk sales out of Britain for HMS 1&2 (80:20) at prices ranging from $358 to $360 per tonne c.i.f. Turkey indicate that the historical $10 premium for U.S. heavy melt over most British heavy melt is under pressure and has declined to around $5 per tonne.
Market participants are uncertain if prices on the next cargo sales from either continent will transact at levels that reinstate the $10 premium.