Posted on 17 Dec 2024
Scrap prices in the Benelux increased throughout last week after Turkey’s return to the market with higher deal values.
On Monday, Benelux exporters’ dock prices were pegged at around €285/tonne ($299) delivered, up €10/t from last week, notes Kallanish.
While daily flow of scrap remains moderate at this level, domestic collectors are aiming for higher values and are thus seen refraining from concluding large-volume contracts. Prices at around €288/t were meanwhile also available from a few exporters.
After the first EU-origin deal by a distressed supplier at $333/t cfr Turkey for HMS 1&2 80:20 early last week, prices increased sharply in Turkey. While subsequent EU-origin deals throughout the week were concluded mostly at $342/t cfr, another sharp rise was seen over the weekend on a Germany-origin deal at $349.5/t cfr for HMS 1&2 80:20. The German supplier, which had offered at $350/t, reportedly rejected a $347/t cfr bid and accepted only a $0.5/t discount.
Although German-origin material has a premium of around $3/t over EU scrap, European suppliers are seen to have increased their price targets to the same levels now due to the expected continuity of Turkish demand ahead of the Christmas holiday.
Unlike Turkey, India’s demand for imported scrap remains low due to weak steel sales, cheaper steel imports, and competitive raw materials. While containerised shredded offers stand at around $380/t cfr Nhava Sheva, the weaker rupee and uncertain steel demand are seen pushing buyers towards domestic options like DRI and scrap. India is facing a higher number of offers from Japan and Australia, but fewer offers from Western markets due to high freight costs and upcoming holidays.
Source:Kallanish
