Scrap prices in the Benelux are seen continuing to rise despite the slowdown in Turkish mills’ scrap purchases last week, Kallanish notes.
Benelux exporters’ dock prices were mostly at €365-380/tonne ($388-404) delivered on Monday, up €5/t from a week earlier.
Although some exporters are trying to maintain their dock prices at €365/t amid Turkey’s slower demand, the ones that need to source material are seen being forced to pay higher prices due to weak inflow.
Turkey’s scrap demand was slower last week compared to the previous two weeks. This has also slowed the pace of the rise in scrap prices. Last Friday, however, southern Turkish mills returned to the market and concluded some deep-sea and short-sea scrap bookings. Southern mills booked small-volume cargoes from the EU at around $448/t cfr Turkey.
One deep-sea booking from the UK was concluded by a southern mill at $455/t cfr for HMS 1&2 80:20 and $475/t cfr for shredded and bonus grade, for April shipment. The initial offer for HMS 1&2 80:20 was heard at around $458/t cfr.
US and Baltic suppliers that offered HMS 1&2 80:20 at $460-462/t cfr failed to find interest from buyers last week.
Market participants expect Turkish mills to resume scrap purchases this week as April-shipment scrap requirements are largely incomplete. Producers have meanwhile committed to supplying high volumes of steel to the government for the reconstruction of damaged and collapsed buildings after the earthquakes.
While Turkey’s scrap market was on hold for most of the week, European suppliers continued to increase their offers in India where mills resumed scrap bookings ahead of the Holi festival, however not aggressively. Following deals at $470-475/t cfr Nhava Sheva for containerised shredded, offers have increased to $475-485/t cfr levels.
Burcak Alpman Turkey
