Scrap prices in the Benelux rose further throughout last week amid strong export markets, with dock prices reaching €350/tonne ($376) delivered.
However, exporters have had a cautious start to this week due to the demand slowdown in major export markets such as Turkey and India at the end of last week. These markets’ appetite for procuring scrap remained low on Monday as buyers initially wanted to gauge the overall situation in export markets.
The latest EU-origin booking in Turkey was concluded at $414/tonne cfr Turkey for HMS 1&2 80:20 last week. Although Benelux exporters were aiming to sell at above $415/t cfr, Turkish mills withdrew from the market after the number of imported scrap offers increased.
Although some scrap dealers believe prices in Turkey are likely to increase further due to Turkey’s incomplete procurement of February-shipment cargoes, some doubt this will happen unless rebar demand provides support.
A Benelux supplier tells Kallanish: “Turkey found rebar demand only in its domestic market in previous weeks, while export demand was almost nil. However, domestic rebar demand slowed last week as prices reached unacceptable levels for buyers. Rebar market demand will most probably determine Turkey’s demand level for scrap in the near term.”
Demand for containerised shredded scrap has also slowed in India while it is livelier in Pakistan. Offers in India and Pakistan stood at $450-455/t cfr Nhava Sheva and $465/t cfr Qasim respectively on Monday.
Burcak Alpman Turkey
