Posted on 09 Jul 2024
Benelux scrap exporters are seen trying to decrease their dock prices after they failed to attain expected values in Turkey.
Confirming Kallanish’s previous reports, it was heard on Monday that various EU exporters sold HMS 1&2 80:20 at $384/tonne cfr Turkey last week.
Benelux exporters’ dock prices increased further, to €325-330/t ($352-357) delivered over the past week. However, they were seen trying to push prices down on Monday as the strong euro at $1.084 and current dock prices are not providing a margin for exporters at Turkish mills’ current buying prices.
An exporter tells Kallanish: “Either dock prices should fall to €315-320/t or Turkey should be able to pay us higher prices so that we can secure a margin. Selling at $384/t cfr would put us at a loss in today's conditions.”
“We have been forced to increase our dock prices due to weak inflow at lower levels. However, today we are faced with the fact that Turkey is not paying us back. We have to lower dock prices as the [exchange rate] parity is not under our control,” says another exporter.
In Turkey, amid weak sentiment, most market participants see more or less stable scrap prices as being more likely than increased values.
While European suppliers failed to attain expected values at above $385/t cfr in Turkey, the situation in the Indian market is not helping them either. Competitive DRI prices coupled with monsoons bringing construction activities to a halt are preventing a possible improvement in scrap values. Current offers for containerised shredded stand at $410-414/t cfr from the UK and the EU, with HMS 1&2 80:20 at $385-390/t cfr Nhava Sheva from West Africa, unchanged from last week.
Source:Kallanish
