prices for bulk ferrous scrap shipments to Turkey inched a few
dollars higher this week as mills returned to the market to
book supply for late December and January.
said two bulk cargo sales from the East Coast were booked over
the past five days.
One cargo, comprising
40,000 tonnes of an 80/20 mix of No. 1 and No. 2 heavy melt and
5,000 tonnes of shred, was sold Nov. 28 at a composite price of
$393 per tonne c.i.f. Turkey, sources said. A second cargo
reportedly was sold late Dec. 2 at $392 per tonne for 25,000
tonnes of HMS 1&2 (80:20) and $397 per tonne for 30,000
tonnes of shred.
The latest price
represents a $3-per-tonne increase in bulk export tags but is
still a few dollars shy of U.S. offer prices, which were
reported to be at $395 per tonne for HMS 1&2 (80:20).
Turkish mills have
booked five additional cargoes from European exporters at
similar price levels and are expected to book several more over
the coming days, sources said.
participants, however, are uncertain if prices will gain
further traction, regardless of pending demand, as some Turkish
mills weigh short-term strategies.
One Turkish trader
expects at least one mill to stop production and a second to
delay purchases for two weeks due to uncertainty on finished
Turkish demand for
scrap is still low, according to a second trader. This
weeks scrap bookings received a price boost from news
that a Turkish producer had sold 25,000 tonnes of billet at
$517 per tonne, he said. "That means theres a little
movement in sales by producers."
Modest gains in export
prices are a reaction to higher freight costs and a stronger
euro, not demand, one European exporter said. "Freights are up
about $3 to $5 per tonne and the dollar-euro rate is at 1.36
again, which means a price increase of about $7 per tonne
compared with last week."
The exporter said
offers are limited, with not much demand. Turkey will need to
buy 15 to 23 cargoes for December and January even if its mills
slow down production to 50 or 60 percent of capacity, he
"The U.S. market is
again going to be the leader in the market and is not showing
weakness," the exporter said. "(However), it seems that the
steel market is not good and therefore the price increases for
steel scrap will not be supported by higher steel prices and
will cause the market to stay very fragile."
market for finished products is weak, a fourth market
participant said. "Maybe a push will come from exports to (the
United Arab Emirates). I would expect more scrap flow from the
U.S. rather than continental Europe, given the exchange rates
and the expectations for the European December market."
One U.S. trader
expects Turkish buyers to wait a little longer before booking
U.S. cargoes. "The Turks are probably waiting to see if U.S.
mills try to buy sideways for December, which would be a big
mistake if (Turkish mills) do come in strong on the East Coast
and buy what they need before things get out of hand here," he