The daily Davis Index for US-origin HMS 1&2 (80:20) slipped by $3/mt to settle at $252.94/mt cfr Turkey on Friday, on a sale from the US.

 

An effort to contain domestic price decreases in the US-led one exporter to book a sale into Turkey at an HMS 1&2 (80:20) level of $253/mt. The cargo will comprise mostly shredded scrap and P&S 5ft for a total of 30,000mt.

 

The price caught some market participants by surprise since offers had risen as high as $260/mt cfr.

 

Some market participants attempted to spread rumors of two deals done at the $255/mt level, but one of them was a work of fiction, while the other was a deal booked a week ago.

 

The price decrease in delivered values coincides with a 20pc increase in bulk freight rates for 30,000mt-sized vessels. Freight rates for this vessel size shipped from New York to Turkey rose to $19-20/mt, from $15-16/mt a week ago, as vessel supply dried up.

 

Freight rates for the larger 40,000mt-sized vessels rose at a slower pace to $17-19/mt for the New York to Turkey route, up from $15-16/mt.

 

The increase in freight rates and a drop in export prices sent fob New York prices for bulk HMS 1&2 (80:20) down to $234.94/mt on Friday, from $240.29/mt on Thursday.

 

Bulk markets into Asia recorded some activity this week with a 10,000mt cargo of busheling from Japan trading into Bangladesh at a price level of $287/mt. Bangladesh booked at least one more cargo this week but details are yet to be released. US exporters offered bulk HMS 1&2 (80:20) to Bangladesh at $268-274/mt cfr.

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