Northeast US mills, East Coast scrap exporters raise prices
OREANDA-NEWS. Northeastern US mills and East Coast bulk exporters raised offer prices on May 2 to secure material amid a firm export market and anticipated significant increases in domestic scrap prices this week during the May buy.
One coastal supplier was quoted during the week ended April 29 at $220-$225/lt delivered dock for HMS I. Those offers on May 2 increased to $250/lt.
Two bulk shippers were offering as high as $265/lt delivered dock for HMS I.
The last bulk sale from the US to Turkey was done on April 22 at $312.50/mt CFR HMS 80:20 basis.
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Since then there was one US bulk sale to Mexico reported at $334/mt CFR HMS 80:20 basis for a prompt shipment.
"The Mexico sale does not represent the market in Turkey," one trader said. "I don’t think there is a buyer [in Turkey] at those levels today. I don’t believe it is representative."
With many international offices closed on May 2 due to May Day celebrations, there was speculation in the US about what global factors would impact the market later in the week ending May 6.
"I wouldn’t be surprised if [a US bulk shipper] pulls the trigger on a deal within the next couple of days and sets a new [pricing] high," one US supplier said.
Another bulk shipper on May 2 said he would only be interested in selling today around $345/mt CFR HMS 80:20 basis to Turkey.
Bulk exporters "are all waiting for the buyers to ask for cargoes versus even offering," an exporter said.
Domestic mills and dealers began initial negotiations on May 2.
Northeast mills were offering around $260-$270/lt delivered mill for HMS I, $270-$280/lt for plate & structural scrap and $290-$295/lt for shredded scrap.
"Looks like they are trying to get a feel for what they can get their hands on at this level," the US supplier said. "Exporters are raising their [inbound offer] prices and that will dampen what the mills will be able to get. This is a very speculative market; it is an upward market. It is a tricky situation."