Benelux scrap rises on improved sentiment

After initially dropping, Benelux scrap prices increased in the second half of last week due to the upturn in global sentiment, with hikes seen across finished steel products prices.

With the dollar at 1.1171 per euro, dock prices on Monday were mostly at €365-370/tonne ($408-413) delivered in Belgium. In Holland, however, they are at above €370/t.

An exporter in the Netherlands says he failed to source HMS 1&2 80:20 at €372.5/t on Monday.

Only a single EU-origin booking was heard in the first half of last week in Turkey. A long steel mill bought an EU-origin cargo at average $471/t cfr Turkey, where HMS 1&2 80:20 corresponded to $461/t cfr. Prices, however, later turned upwards, despite the weakening of the euro against the dollar.

European exporters, benefiting from the weaker euro and lower freight, have increased dock prices rather than decreasing offer prices in Turkey. They have instead increased their price targets in Turkey amid higher finished steel prices.

A Benelux exporter tells Kallanish: “No exporter would agree to sell at last week’s price today. Workable levels are at above $470/t [cfr Turkey]. Despite availability of material, domestic suppliers are sourcing a very limited tonnages as they target €400/t levels.”

Another Benelux exporter expects EU-origin HMS 1&2 80:20 offers to appear at around $475/t cfr following the Venezuela and Baltic bookings at $483/t and $493/t cfr respectively for HMS 1&2 95:5.

In the Indian subcontinent, a significant recovery in demand was observed last week due to a shortage in domestic scrap supply. Although buyers bid at lower levels, offers for containerised shredded were at $540-545/t cfr Nhava Sheva, unchanged on-week. Market players expect Dubai-origin HMS 1&2 80:20 prices to reach $500/t cfr sooner now amid the domestic supply shortfall.

Burcak Alpman Turkey