Turkey re-enters US ferrous scrap market at higher prices after brief hiatus
In a fresh cargo sale to Turkey, US deep-sea ferrous scrap export prices ticked up by $2-11 per tonne compared with the last such US deals
An East Coast exporter sold a cargo containing 19,000 tonnes of an 80:20 mix of No1 and No2 heavy melting scrap priced at $402 per tonne cfr and 21,000 tonnes of shredded scrap and 5,000 tonnes of bonus-grade material priced at $422 per tonne cfr for September shipment to a Turkish mill on Monday August 22.
Prior to this, a separate US shipper on the East Coast sold an unspecified tonnage of HMS 1&2 (90:10) for $405 per tonne cfr — equivalent to $400 per tonne cfr for an 80:20 mix of the grade — it was reported on Wednesday August 17.
The last reported shred and bonus prices from the US East Coast to the region were $411 per tonne cfr for both grades in a previous deal reported on August 11; HMS 1&2 (80:20) went for $396 per tonne cfr in the same sale.
Turkish importers have paid a series of incremental increases for US ferrous scrap in recent transactions, but the market upside remains limited, sources said.
Mills there continue to target HMS 1&2 (80:20) at $390-400 per tonne cfr for imports of the grade, but have been unsuccessful in the US market of late.
Expectations in the US domestic scrap market that September prices will be sideways in a best-case scenario continue to cast a long shadow over export prospects.
Nonetheless, Turkish importers are expected to increase their export presence soon while regional mills work to secure scrap tonnages for September’s steel production schedule, despite reports that many are running at a reduced capacity amid hefty production costs.