US ferrous scrap export prices under pressure

Export yard buying prices and containerized shredded scrap prices along the United States' East Coast are under downward pressure from a discounted cargo sale to Turkey five days ago, despite one quiet deal booked at higher prices to a less frequent customer.

The East Coast cargo traded to Turkey on January 19 at $363 per tonne cfr for an 80:20 mix of No. 1 and No. 2 heavy melting scrap, $368 per tonne cfr for shredded scrap and $373 per tonne cfr for plate and structural scrap, down $7 from the previous sale.
By contrast, sources said an East Coast cargo was quietly sold to Kuwait recently at $395 per tonne cfr for 80:20 heavy melt. Freight for the Kuwaiti cargo is estimated at $49 per tonne, compared with freight to Turkey at $23 per tonne.

Sources speculate that the Turkish cargo represents one US exporter’s attempt to “stir the market” by lowering bulk sale prices to Turkey, which would allow it to lower its dock buying prices on the East Coast....

Published

Mei Ling Toh

January 24, 2018

17:53 GMT