NEW YORK The U.S. bulk
ferrous scrap export market took an unlikely turn this past
week after one exporter abandoned traditional freight routes to
manage the current demand environment.
With recent interest from
Turkish mills dismal, one exporter has concluded bulk sales
from the East and Gulf coasts to East Asia, AMM has
East Coast exporters continue to
seek prices of $405 to $410 per tonne c.i.f. Turkey for an
80/20 mix of No. 1 and No. 2 heavy melt. However, buyers for
Turkish producers have bid around the $400-per-tonne level with
no urgency in requirement.
The standoff has resulted in no
new sales to Turkey since the first week of January and has
encouraged one exporter to consider other markets.
Current East Coast bulk freight
rates to Turkey are trending between $22 and $24 per tonne,
with bulk freight rates from the Gulf Coast to Turkey about $5
The ability to ship from either
coast to consumers in South Korea and Vietnam is possible only
with a nearly $20-per-tonne differential in delivered prices to
help cover the increase in freight costs.
A recent uptick in demand from
East Asia, spurred by a rush to cover inventory before upcoming
holidays slow market activity in the region, created just the
right price environment to enable this atypical trade route,
AMM has been told.
The West Coast market on Jan. 18
was abuzz with talk of two to three bulk cargo sales from the
West Coast to Vietnam at a price of about $425 per tonne
However, AMM learned
that there have been two bulk sales to Vietnam and one to South
Korea. The sales to Vietnam were reportedly booked at an HMS
1&2 (80:20) price basis of about $430 and $437 per tonne,
respectively. Both cargoes will carry a near-equal mix of heavy
melt and shredded scrap.
The third bulk sale, to South
Korea, traded at about $425 per tonne c.i.f. on an HMS 1&2
Of the three bulk sales, only
one will ship from the West Coast, while one will depart from
the Gulf Coast and the third from the East Coast, one source
With the last East Coast bulk
sale to Turkey at around $407 per tonne c.f.r., the $18 to $30
price differential in delivered values to South Korea and
Vietnam made both routes viable, the source added.