Scrap prices in the Benelux have recovered since last week. However, even a price recovery does not seem to be helping ease ongoing supply limitations.
Exporters’ dock prices, which were at around €320-330/tonne a week ago, were mostly at $340-350/t ($370-381) delivered on Monday.
Benelux exporters, however, are bemoaning the lack of material as sourcing from collectors remains an issue, even at €350/t.
A Benelux exporter tells Kallanish: “When you buy at €350/t, you have to sell to Turkey at above $420/t cfr [Turkey]. However, those values are not yet available in Turkey.”
“On the other hand, collectors are not keen to sell at €350/t. Most say they prefer to wait today. We do not have favourable market conditions here,” says another exporter.
In Turkey, prices rose throughout last week, with EU-origin HMS 1&2 80:20 reaching $414/t cfr on the latest booking, from $407-410/t cfr levels earlier last week.
However, suppliers are seen targeting higher levels this week amid positive developments arising from China’s strong return from holiday. Also supportive are the decrease in Turkish mills’ energy prices and strong Turkish flat steel prices, which have found even further support from the increase in import duties last weekend.
One European exporter is heard targeting $425/t cfr Turkey for HMS 1&2 80:20.
In India, although buyers’ appetite is not strong, sentiment has also turned bullish. EU-origin containerised shredded is offered at $455/t cfr levels, although buyers are bidding at $440-445/t cfr.
Burcak Alpman Turkey
