USWC sells rare scrap metal shipments to Turkey: Fix
The price of ferrous scrap in the eastern United States has been adjusted in paragraph 8.
A U.
S. exporter in the Pacific Northwest sold a shipment of ferrous scrap to a Turkish steel producer this week, indicating a lack of liquidity on the west coast and a new arbitrage opportunity for shippers.
The 50,000 metric ton mixed cargo included HMS 1/2 90:10 and shred for December shipment at an undisclosed price. Market participants reported that the share of cargo delivered by HMS was about $350 per ton, and the share was $370 per ton. Argus could not confirm the cost of the cargo or the freight rate for this unusual flight from Vancouver, Washington to Turkey.
The deal coincided with limited sales opportunities on the west coast due to declining demand from Asian buyers and the recent revival in the Turkish ferrous scrap market.
Wholesale scrap exports on the West Coast fell to their lowest level since at least 2016 in October, according to Argus estimates tracking data from VesselFinder. Argus recorded only one shipment of 36,000 tons from the west coast for the month and three shipments in September totaling 90,000 tons, compared with 12 shipments totaling 384,000 tons for the same period last year.
Prolonged monsoon rains in Bangladesh and India, which lasted until mid-October, suspended the seasonal revival of construction activity and demand for long products requiring large amounts of scrap.
Bangladeshi buyers are also facing increasing difficulties in financing transportation due to a lack of liquidity in lending ahead of national elections to replace the government. the existing provisional Government. Indian companies are not operating in the deep-sea market, as buyers are increasing their consumption of cheaper cast iron products supplied from other countries.
On the contrary, the Turkish ferrous scrap market is recovering due to increased demand for rebar and insufficient scrap supply.
The arbitration is based on the advantage of the cost of transportation on a larger vessel, combined with the higher cost of shred in Turkey compared to South Asia. Turkish steelmakers consistently pay a premium of $20 per ton for the supply of HMS 1/2 80:20 steel, compared with a premium of $5 per ton in Bangladesh. This week, the Turkish company paid US$375.50 per ton cfr for US east shred, compared to recent transactions in Bangladesh, which were just below US$360 per ton cfr.
The exporter from the west coast of the USA last sold cargo to Turkey in 2009. 2021, the cargo was shipped from Los