Benelux scrap market remains cautious amid Turkish uncertainty

Benelux scrap exporters are seen remaining cautious over sales due to the post-election uncertainty in Turkey.

Although most exporters were not in the market on Monday and avoided purchasing material due to the uncertainty, a few are seen to have increased their dock prices slightly, in order to source material. Dock prices stood mostly at €295-305/tonne ($321-332) delivered levels on Monday.

However, domestic suppliers are seen targeting higher levels, at above €305/t.

One domestic supplier tells Kallanish: “Our costs are much higher compared to current prices exporters are paying. Exporters that need to buy material have to pay higher prices.”

However, sentiment remained quite weak on Monday due to the post-election uncertainty in Turkey. As all parties remained below the 50% threshold during the first round of presidential elections, according to the preliminary results, Turkey will have a run-off on 28 May. With the situation adding further tension in the market, neither finished steel buyers nor Turkish mills had the appetite to do business on Monday.

Turkish mills’ rebar quotes stood mostly at above $680/t ex-works. However, some have offered discounts and decreased their prices to $676/t. Stockists, which expected the lira to depreciate after the election and bought large volumes last week, have offered in the low $670s, however.

Although Turkish mills bought EU-origin HMS 1&2 80:20 at $368-371/t cfr Turkey last week and scrap suppliers were targeting to sell at higher levels this week, most market participants do not expect mills to continue buying even at these levels.

Amid subdued scrap demand in Turkey, the largest export destination, Benelux exporters are also seen refraining from purchasing material unless they have to fill a sold vessel.

In India, scrap prices registered an upward trend last week with the recovery seen in Turkish demand. Indian buyers purchased containerised shredded mostly at around $430-432/t cfr levels. On Monday, offers were at above $435/t, although buying interest is weak amid unfavourable conditions in the domestic steel market and halted Turkish scrap demand.

Burcak Alpman Turkey