NEW YORK Four
ferrous scrap bulk sales to Turkey and one to South Korea kept
U.S. exporters busy last week as demand picked up on marginally
Two exporters each
sold two bulk cargoes to Turkey off the East Coast at prices
ranging from $363 to $365 per tonne c.i.f. Turkey for an 80/20
mix of No. 1 and No. 2 heavy melting steel scrap, market
While the range is
just a touch below the previous East Coast bulk sale to Turkey
on Sept. 13 at $366 per tonne for HMS 1&2 (80:20),
pre-shipping or f.o.b. values dropped a bit more due to rising
freight costs, sources said.
Bulk vessels have
shifted their focus to the seasonal uptick in shipments of
grains, causing freight rates to jump by as much as 15 percent,
one market participant said.
Barely a day after one
ferrous scrap exporter sold two bulk cargoes to Turkey at an
HMS 1&2 (80:20) price of $363 per tonne, a second exporter
reportedly booked separate sales at $363 and $365 per tonne as
Turkish mills continued to secure cargoes.
As a result,
East Coast Ferrous Scrap Export Index for HMS 1&2
(80:20) settled Sept. 30 at $339.05 per tonne f.o.b. New York,
down 1.6 percent from $344.48 previously.
speculated that prices could hover around these levels while
buyers in Turkey wait for the U.S. domestic market to settle
either this week or next week.
"The prices seem to
have bottomed at current levels. There is no huge demand or
tightness in availability for scrap to move the prices up
sharply, but at least we can see prices stabilizing at current
levels and may earn a slight increase in the coming days," a
second source said.
However, a third
source was more bearish. "My expectations are that the domestic
market will be off $10 to $15, and that exports will trend
down. I would not be surprised to see Turkey below $360 within
the next couple of weeks," he said.
On the West Coast,
bulk exporters didnt book as many sales but sources said
the market has been active, with a lot of interest from Far
East Asian mills.
"I think the market
hit bottom because all of a sudden we had interest from mills
last week. One vessel sold and there were calls for more," one
West Coast market participant said.
Despite the renewed
interest, only one cargo sold last week at $366 per tonne
c.i.f. South Korea for 15,000 tonnes of HMS 1&2 (80:20) and
$371 per tonne for 10,000 tonnes of shredded scrap, sources
The sale will attract
higher freight rates than larger vessels, meaning pre-shipping
values slipped slightly despite delivered prices remaining
West Coast Ferrous Scrap Export Index for HMS 1&2
(80:20) settled Sept. 30 at $332.94 per tonne f.o.b. Los
Angeles, down 1.2 percent from $337.14 previously.