Posted on 21 Apr 2020
Scrap prices in the Benelux have stabilised following a period of sharp increases.
Exporters’ dock prices for HMS 1&2 80:20 increased from €180/tonne to €195-200/t ($175-183/t) delivered and above throughout last week. However, scrap suppliers’ resistance to selling at below €205/t delivered has disappeared following the stabilisation in Turkish imported scrap prices.
Some suppliers who were holding their material to sell at above €205/t are seen to have sold HMS 80:20 at €195/t and HMS 1 at €210/t delivered on Friday.
A Benelux scrap supplier tells Kallanish: “We are likely to see an improvement in scrap flow, as our government is starting to soften certain measures against the coronavirus. With the automotive industry and demolition industry restarting operations, scrap could start flowing a bit more freely.”
Although Turkish steel producers bought numerous scrap cargoes last week, the number of European-origin bookings has remained limited with the latest HMS 80:20 deal prices at $248-251/t cfr Turkey. Baltic- and US-origin suppliers have been the major sellers with HMS 80:20 prices concluded at $256-257/t cfr. Scrap demand in Turkey is seen to have slowed this week.
Although there was scrap demand in Egypt last week, buying interest in the EU’s other export destinations, specifically Asia, was weak due to lockdowns and coronavirus measures.
Even if there was demand, European suppliers would not be able to meet it due to the lack of supply.
Although scrap inflow is expected to build, scrap demand in the EU is also expected to improve with European mills resuming production.
Source:Kallanish
