Posted on 10 Mar 2020
Benelux scrap exporters have made a cautious start to the week because of the euro strengthening against the dollar. The region’s scrap market is quiet, with exporters waiting to gauge exchange rate movement before buying from collectors or selling to export markets.
Dock prices for HMS 1&2 80:20 have further decreased to €200-205/tonne delivered from €205-210/t last week. Even €195/t is available from some exporters.
A Benelux scrap exporter tells Kallanish: “The exchange rate, which stood at 1.07 […per dollar] ten days ago has increased to 1.14 today. With such a high parity and the price ideas of Turkish mills, we cannot afford buying at over €205/t delivered.”
Another exporter, recalling the dollar’s depreciation against the euro comments: “Last week we were ready to start negotiations at $270/t cfr Turkey for HMS 80:20. However, today, with rates at 1.14, we cannot sell at below $275/t cfr Turkey.”
On the other hand, demand in export markets continues to be stagnant. Turkish mills are not inquiring for deep-sea scrap, and Benelux scrap exporters are unable to conclude sales to their Asian customers due to the shortage of containers. Some exporters even had to cancel their previous sales as a result of higher freight costs.
Another scrap exporter says: “It is soon going to be impossible to sell containerised cargoes to Asia. They will need to accept bulk cargoes. The availability of containers is decreasing each day.”
Although Turkish mills have made a quiet start to the week, they are expected to increase their deep-sea inquiries this week. Scrap exporters, however, are curious how Turkish mills will accept higher scrap prices as their bids last week were low.
Source:Kallanish
