NEW YORK Prices
for U.S. bulk ferrous scrap exports to Turkey slipped Feb. 20
as Turkish mills continued to book cargoes at attractive
reportedly sold 40,000 tonnes of a 90/10 mix of No. 1 and No. 2
heavy melt at $352.50 per tonne c.i.f. Turkey, although several
sources said that the material was more likely to be HMS
1&2 (85:15) quality.
A second exporter sold
30,000 tonnes at a composite price of $351 per tonne for 12,000
tonnes of HMS 1&2 (80:20) and 18,000 tonnes of shred to the
same Turkish mill. The sales price suggests a HMS 1&2
(80:20) price of about $349 per tonne, down 1.4 percent from
previous sales (
amm.com, Feb. 19).
participants expressed surprise at the price due to the
exporters higher freight costs borne out of a two-port
loading. Sources said the exporter likely took the sale to
clear inventory and position itself for a sale to what many
believe will be a U.S. steel producer-owned scrap company.
However, with both
sales most market participants said prices likely have reached
their bottom as $350 per tonne for U.S.-origin HMS 1&2
(80:20) was the target for many Turkish mills.
"I feel we are at
bottom or very close to bottom. It may drop a few dollars, but
not more," one Turkish trader said.
prices at East Coast docks support the current level and
anything below this could create issues for collection, he
said. "On the other hand, scrap prices softened by about $50
per tonne (this year). However, Turkish rebar prices have
softened only about $15 to $20 per tonne. Lets see how
Some U.S. sources also
suggested that the market was at or near its floor.
"I believe the export
market is finding a bottom in this range. Further, U.S.
exporters pricing has likely already bottomed out simply
based on availability as we look into March," one U.S. trader
A U.S. exporter
agreed. "We are seeing a stabilization in the markets. At this
time the demand appears to have eaten up any surpluses in the
(East and West Coast) market," he said.
A second Turkish
trader said that since Turkish rebar prices have not followed
the drop in scrap prices, a slight strengthening is possible.
"The market is more or less flat now. Turks are more or less
confident that they can sell rebar at equivalent numbers (so)
we might see a few dollars up in the coming days," he said.