Posted on 05 Sep 2023
Scrap prices in the Benelux remain strong despite Turkish buyers’ absence from the market.
Exporters’ dock prices in the Benelux were pegged mostly at around €305/tonne ($329) delivered on Monday, up from €295-300/t a week earlier.
Although Turkey remained out of the market last week, trading activity was quite lively in India. This, coupled with the end of summer holidays, has caused prices to remain firm.
No deep-sea scrap bookings were heard in Turkey last week. Turkish mills tried to fulfil the remaining requirements for September-shipment cargoes from short-sea suppliers and the domestic market. The unfavourable steel sales conditions mean Turkish mills are following a cautious stance in their scrap procurement before starting October-shipment bookings.
Amid Turkey’s lacking appetite for scrap purchases, suppliers were also out of the market last week. They were in no rush to sell due to the sizeable sales they concluded during August, and kept their price targets strong. Although suppliers believe scrap prices are unlikely to decrease in Turkey in the near term, buyers say this depends on how long Turkish buyers hold out.
A Turkish mill source tells Kallanish: “Suppliers are not under pressure today but if Turkey keeps halting purchases for two weeks, prices will come under pressure. Turkey cannot afford their [suppliers’] price targets under current steel sales conditions.”
The latest bookings were concluded at $368-370/t cfr Turkey for EU-origin and $374-375/t cfr for US-origin HMS 1&2 80:20 the week prior to last.
Unlike Turkey, demand in India was quite strong last week for both bulk and containerised cargoes. Higher billet and sponge iron prices in India directed buyers to the scrap market. Following the latest bookings at $435-440/t cfr Nhava Sheva, offers now stand at $440/t cfr for containerised shredded, up from $430-435/t a week earlier.
Source:Kallanish
