Scrap prices in the Benelux continued their uptrend last week, reaching their highest level in two years.
Dock prices in the Benelux continued increasing gradually throughout last week and have reached €255-260/tonne delivered for HMS 1&2 80:20.
A Benelux scrap supplier tells Kallanish: “The increase in prices is unbelievable. We started the week at €235/t, saw €245 on Thursday, and the other day it was €255-260/t delivered for HMS. I am sure I can achieve even higher prices if I just supply some material to an exporter’s competitor.”
Turkish scrap demand continued throughout last week, ending with numerous scrap bookings, mostly from the Baltic and the EU, while US suppliers were out of the market. Consequently, EU-origin HMS 80:20, which was at below $340/t cfr at the beginning of the week, rose to $346-347/t cfr Turkey by the end of the week.
UK-origin HMS 80:20, meanwhile, reached $350/t cfr with a booking concluded at the weekend. A mill in western Turkey bought 19,000 tonnes of HMS 80:20 at $350/t and 6,000t of shredded at $360/t cfr, for December shipment. Turkish mills continue paying a premium for shredded scrap to replace costlier pig iron.
EU-origin scrap prices in India and Pakistan have also increased and reached the highest levels in the last two years. This was mostly the result of higher freight costs arising from the lack of containers, rising scrap prices and strong scrap demand in the global market.
Following bookings last week at $365-370/t cfr, offer prices for shredded scrap stood at above $375/t cfr India/Pakistan on Monday. On the same day, a buyer in Pakistan bought 500 tonnes of containerised shredded scrap from the UK at $374/t cfr. Market participants expect prices to reach $380/t cfr by the end of the week.
Scrap demand in Egypt is also strong, with almost all mills opening scrap import buying tenders. European suppliers are expected to conclude sales to Egyptian mills this week.
Meanwhile, European mills are also expected to start December purchases this week.
While dock prices increase, the euro now fetches almost 1.2 dollars, increasing European exporters’ costs. Due to the strong demand versus limited supply and higher costs, EU-origin HMS 80:20 offers are expected to appear at above $355/t cfr Turkey.
