Scrap prices in the Benelux decreased on Monday as expected demand in largest export market Turkey failed to materialise.
On Monday, HMS 1&2 80:20 prices in Belgium were seen mostly at €500-510/tonne ($549.5-560), while in the Netherlands they were mostly at €500-515/t delivered, depending on the source.
An exporter tells Kallanish: “Turkey’s purchases are slower than expected. We have been forced to decrease our dock prices. I am curious how suppliers will react to these prices.”
Benelux scrap exporters’ demand for material from local collectors is also weak as the former are waiting for Turkish buyers to accept offer prices.
Another exporter says that the main yards are refusing to sell at €500/t delivered. This price is obtainable only from feeder yards.
European suppliers are seen offering HMS 1&2 80:20 at $645/t cfr Turkey levels. Turkey’s appetite for scrap purchases is, however, quite low due to the further increases seen in domestic electricity and natural gas prices as of 1 April. Turkey’s finished steel sales, moreover, remain weaker than expected.
Turkish mills have been forced to increase finished steel prices following the energy rate hikes. They were offering rebar at above $960/t ex-works on Monday, up from $950/t on Friday. Domestic demand remained stagnant on Monday, causing stockists to offer material at $920-930/t ex-works.
Turkish mills do not find higher prices for scrap workable given the conversion cost from scrap to rebar has increased to above $230/t. Most are expecting prices to follow a stable trend during May-shipment scrap purchases.
To India, suppliers are seen to have further increased offer levels for containerised shredded. Although offers have increased to $655-660/t cfr Nhava Sheva, buyers’ bids remained unchanged at $635-640/t cfr. UAE-origin HMS 1&2 80:20 offers are hovering at $555-560/t cfr Nhava Sheva, meanwhile.
Burcak Alpman Turkey
