Benelux scrap prices recover, suppliers target higher levels

European exporters’ dock prices, which started last week at €280-285/tonne ($286-291) levels, recovered in the second half of the week amid tight supply and the price rise seen in the Turkish scrap market.

Dock prices in the Benelux were seen standing mostly at around €300-305/t ($305-310/t) on Monday.

Amid holidays and suppliers’ higher price expectations, the flow of material remains weak. Given the situation, European suppliers are seen targeting higher prices in Turkey. The number of offers is quite low, however, as most suppliers have backed off from the Turkish market.

A Benelux exporter tells Kallanish: “I have increased my dock price to €305/t this [Monday] morning and could supply only 2,000 tonnes. I think we will have a supply problem even after the holidays. Supply has been tight for a very long time.”

Turkish mills, however, seem reluctant to pay higher prices for scrap amid steel sales that remain insufficient.

On Monday, there was a rumour of a European HMS 1&2 80:20 sale at around $377/t cfr Turkey. This has been confirmed as a sale last week, while the supplier says there are no offers from the EU this week, even at $385/t cfr.

“Some European producers have started inquiring about scrap following their return from the holiday this week. This is likely to result in even more limited supply and will increase the pressure on prices,” says another European scrap exporter.

In India, prices have also increased since last week, mostly due to the price jump in Turkey. Containerised shredded was offered at $480/t cfr levels on Monday.

Burcak Alpman Turkey