Posted on 10 Feb 2023
Benelux scrap suppliers are seen to have started decreasing their dock prices due to uncertainty in the Turkish market, the largest export destination.
Although Benelux exporters’ dock prices were standing at €350-360/tonne levels on Monday, they have since started to decrease their prices by €10-20/t.
One Benelux supplier tells Kallanish: “Turkey’s production volume has decreased significantly due to non-operating mills in the south [following Monday’s earthquake]. There is no clarity on when they will resume production. This is preventing us from seeing the clear picture of Turkey’s demand level.”
Another Benelux supplier says he sourced material at €325/t ($350/t) delivered on Thursday. “The same supplier was refusing to sell at €355/t a week ago. There are some big suppliers that are still targeting to sell at €340-345/t today but I don’t think any exporter accepts this today,” he said on Thursday.
Although some Benelux exporters have price ideas at around $425/t cfr Turkey for HMS 1&2 80:20, no inquiries or offers are heard. In any case, these levels do not seem acceptable for Turkish mills.
One Turkish mill says: “The euro is weaker against the dollar now compared to last week. Besides, Turkey’s scrap requirement will decrease amid lower production. I don’t understand how suppliers are still seeking last week’s levels. Although no one wants to talk about scrap under current conditions in Turkey, I don’t think suppliers can achieve last week’s prices when Turkey returns.”
The latest scrap bookings last week were done at $417-420/t cfr from the EU and $425-428/t cfr from the US and Baltic for HMS 1&2 80:20.
Meanwhile, Indian buyers, major buyers of European containerised shredded scrap, are also seen eyeing developments in Turkey before concluding new purchases.
Source:Kallanish
