Tumbling U.S. bulk ferrous scrap export prices to Turkey have
triggered an increase in sales to the country, with the latest
sales bringing to seven the number of cargoes booked over the
were quick to point out to AMM that the return of
Turkish buyers to U.S. shores was merely a function of price,
which has fallen more than $15 per tonne in the past 10
Three exporters booked
three new cargo sales to Turkey Feb. 6 and one to Egypt Feb. 4,
with three of the sales originating from the East Coast and one
from the Gulf Coast, sources told AMM. Thats on
top of the four sales to Turkey reported last week
(amm.com, Feb. 4).
One East Coast
exporter reportedly sold a mixed cargo at $362 per tonne c.i.f.
Turkey for an 80/20 mix of No. 1 and No. 2 heavy melt, while a
second exporter sold a vessel carrying 45,000 tonnes of only
HMS 1&2 (80:20) out of the Gulf Coast at $365 per tonne
A third exporter
reportedly sold a smaller cargo at $365 per tonne for 17,500
tonnes of HMS 1&2 (90:10) and (80:20), and 17,500 tonnes of
Sources said a cargo
was also sold to Egypt a few days prior to the Feb. 6 sales to
Turkey at a composite average price of $370 per tonne c.i.f.
Egypt for 25,000 tonnes of HMS 1&2 (80:20) and 25,000
tonnes of shredded scrap.
weekly East Coast Ferrous Scrap Export Index for HMS 1&2
(80:20) settled Feb. 10 at $335.68 per tonne f.o.b. New York,
down 5.1 percent from $353.65 per tonne Feb. 3.
"U.S. prices overshot
the world market in January. It brought a deluge of material to
U.S. consumers and stymied any potential to retain those
levels," one exporter said. "With reduced demand in Asia and
Turkey, it is a simple case of supply and demand. Even the
severe winter here in the U.S. wasnt enough to hold back
tonnage from the market."
One European exporter
said Turkish producers will now favor U.S.-origin scrap and
needed U.S. export prices to fall to current levels due to weak
finished product markets in Turkey.
"Turks pushed scrap
prices down quite successfully since U.S. material is available
and the steel market is getting weaker. It will be difficult to
sell material from continental Europe," he said.
A second U.S. exporter
said currency markets also contributed to plummeting export
"Lack of (finished
steel) sales created a downturn in the trend like a fire in the
market, and the rising dollar vs. the Turkish lira exchange
rate added some more fuel to this fire, pressing scrap prices
to be cheaper as they are priced over the dollar," he said.
A fourth exporter said
markets are likely to stabilize soon. "Turkish mills seem able
to sell more rebar nowadays, and the spread between bar and
scrap is normalizing, so we could see a bit more demand," he
A few sources in
Turkey said they expect HMS 1&2 (80:20) prices to hold at
around $360 per tonne in the coming days since current Turkish
rebar prices in a range of $565 to $575 per tonne f.o.b. Turkey
support this level.