NEW YORK Prices for U.S. bulk ferrous scrap exports to Turkey inched slightly higher this week as mills continued to book cargoes.
Market participants said four bulk cargoes were booked by Turkish mills over the past few days, with just one of those coming from the United States.
The U.S. cargo reportedly sold out of Houston for $378 per tonne c.i.f. Turkey for an 80/20 mix of No. 1 and No. 2 heavy melt steel scrap. The cargo should comprise 29,000 tonnes of HMS 1&2 (80:20) and 16,000 tonnes of plate and structural scrap, which sold at $388 per tonne.
The Houston cargo was void of shredded scrap due to strong sales into Mexico and domestic mills, one trader said.
A mill buyer in Turkey said the bulk sale from Houston represented a $1- to $2-per-tonne increase from the last East Coast sale to Turkey at $373 per tonne c.i.f. for HMS 1&2 (80:20) on July 11 (amm.com, July 21).
A bulk cargo from Houston trades at a $3- to $4-per-tonne premium to East Coast cargoes due to higher freight costs and better-quality scrap, he said, indicating that the new sale would set the East Coast HMS 1&2 (80:20) price level at around $374 to $375 per tonne c.i.f. Turkey.
A second Turkish mill reportedly booked a 40,000-tonne cargo from the United Kingdom at an average of $369 per tonne for 30,000 tonnes of HMS 1&2 (80:20) and 10,000 tonnes of bonus scrap. Market participants said the U.K. cargo traded at a $6-per-tonne discount to U.S. East Coast prices due to a difference in quality.
A third mill reportedly booked a bulk cargo from Europe at $361 per tonne c.i.f. Turkey for 14,000 tonnes of HMS 1&2 (75:25), $375 per tonne for 4,000 tonnes of shred and $380 per tonne for 4,000 tonnes of plate and structural scrap.
Market participants said a fourth mill had booked a Russian cargo at an average of $375 per tonne, but no cargo details were available.
One European market participant said he was surprised that Turkish mills were continuing to book cargoesespecially at this weeks pricessince prices for iron ore, rebar and finished goods have been weak for the past few weeks.
However, a Turkish trader said some Turkish mills still need to fill their inventories, and supply-demand fundamentals have kept scrap prices firm.