NEW YORK U.S. bulk ferrous scrap export prices to Turkey have fallen by around $5 per tonne as two scrap exporters bowed to heavy pressure from their largest customer.
Exporters spent the early part of this week warding off lower price bids from Turkish mills (amm.com, Nov. 12). But after learning of seven bulk sales by European suppliers, two midsized U.S. East Coast exporters agreed to lower prices for an 80/20 mix of No. 1 and No. 2 heavy melt to a range of $389 to $390 per tonne c.i.f. Turkey, $5 to $6 below the prior bulk sale of HMS 1&2 (80:20) from the East Coast that was concluded late last month at $395 per tonne (amm.com, Nov. 4).
One Turkish mill bought both of the latest cargoes, market participants said. One cargo reportedly traded at a composite price of $393 per tonne for 14,000 tonnes of HMS 1&2 (80:20), 11,000 tonnes of shredded scrap and 2,000 tonnes of bonus scrap, while the second cargo traded at a price basis of $389 per tonne for HMS 1&2 (80:20) and $394 per tonne for shredded scrap.
Meanwhile, a third U.S. exporter has sold a bulk cargo to Italy, AMM has been told.
The exporter reportedly sold 32,000 tonnes of shredded scrap at $406 per tonne c.i.f. Italy. Current freight estimates indicate that the price reflects a similar $394- to $395-per-tonne price level for bulk shredded scrap delivered to Turkey, in line with the latest deals.
However, several sources said they are uncertain how many additional cargoes will sell from the United States at the new price level.