Dock buying prices for ferrous scrap at one US East Coast export region could see a large price reduction this week, after exporters backpedaled on recent across-the-board price increases due to declining Turkish export rebar prices.
There were no cargoes sold from either US coast over the past week, but export yards in Boston dropped prices in anticipation of the next bulk sale to Turkey - much to the surprise of many market participants. An East Coast exporter implemented a $10-per-gross-ton drop for all scrap grades at its port in the Boston region, with a second $10-per-ton reduction slated to take place later this week. Its competitor was quick to follow suit, sending out notices to announce a similar $10 decrease. "If Boston is able to make [the lower prices] stick without a reduction in flow, you know it won't be long before New York and Philadelphia will follow. [The exporters] don't have the margins they were anticipating on the last few sales, so they will not hesitate to lower prices," a seller to the docks said. Unlike Boston, where sellers are mainly captive to the export...