Benelux scrap remains firm despite weak export demand

Scrap prices in the Benelux have remained firm, even increasing slightly in Belgium. The spread between vales in Belgium and Holland, which widened last week, has now narrowed.

On Monday, prices in Belgium were seen mostly at €510/tonne ($559), while in the Netherlands they were at €515-525/t ($565-576) delivered for HMS 1&2 80:20.

A Benelux scrap supplier tells Kallanish: “Prices have not changed much because of the non-existent scrap buying activity in Turkey last week. Exporters do not need to fill vessels and have remained inactive in their purchases during Turkey’s silence. They initially wish to see the prices in Turkey.”

A Dutch exporter says: “We are at €525/t, but I can’t say the flow is great. Exporters bidding at lower prices are mostly not much interested in buying.”

The expectation for an increase in domestic prices in April and Turkey’s ongoing need for May shipment scrap purchases are seen keeping scrap prices firm in the Benelux.

No scrap booking was heard in Turkey last week. In the absence of Turkish mills, some Benelux exporters have offered HMS 1&2 80:20 at $645/t cfr Turkey, while others offered the same grade at $660/t cfr. A cargo comprising HMS 1&2 75:25 was offered at $637/t cfr.

Turkish mills, having seen a decline in finished steel demand last week after completing EU sales, did not show interest in scrap offers. They initially wanted to gauge the situation with steel sales.

On Monday, however, a Turkish mill is confirmed to have bought EU-origin HMS 1&2 80:20 at $643/t cfr and shredded at $668/t cfr Turkey.

The situation in India was no different. Although Indian mills were not active in scrap purchases, containerised shredded suppliers have increased their offer prices. On Monday, containerised shredded offers were seen standing at $640-645/t cfr Nhava Sheva, while buyers’ price targets remained at below $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