The Benelux scrap market has had a quiet start to the week due to the Easter holiday. Business activity is expected to resume on Tuesday, while most market participants think prices will see an upward correction after the holiday, as flow remained almost null at the latest levels.

Despite weak activity in Turkish scrap market last week, Benelux dock prices remained firm and unchanged. On Friday, exporters’ dock prices stood mostly at €360-370/t ($390-401) delivered. Some exporters have even slightly increased their prices to €370/t due to domestic suppliers’ resistance to lower levels.

Although Turkish mills’ silence was exerting pressure on prices and they were pushing for lower levels, fresh US-origin scrap booking on Friday afternoon appeared at a high level, surprising many market participants.  A western mill bought a US cargo comprising 25,000t of HMS 1&2 90:10 at $442/t and 5,000t of bonus grade at $460/t cfr, for the first half of May shipment.

A Turkish scrap supplier tells Kallanish: "I think the buyer could not find a cheaper option, because as far as I know even European suppliers are not offering HMS 1&2 80:20 below $440/t cfr.”

Although the market was expecting the initial booking after such a long time to appear at a much lower price, the price of HMS 1&2 80:20 was even higher compared to the previous Baltic-origin deal at $439/t cfr 10 days earlier.

This booking coupled with the expectation of stronger Indian demand and Turkish mills’ return to the market before the Eid holiday next week is anticipated to support prices in the EU. Consequently, Benelux dock prices are not expected to follow a downward direction.

However, the further decline of the euro, which weakened against the dollar on Monday, may give buyers a chance to bargain over European offers.

In India, although a scrap shortage is reported, low steel demand and high interest rates have continued to keep the majority of mills away from booking large quantities of scrap. However, to satisfy urgent requirements, Nhava Sheva-based mills booked low-priced Gulf Cooperation Council-origin HMS last week. Offers for containerised shredded scrap were noted at $455-460/tonne cfr Nhava Sheva.   

Most market participants expect to see stronger demand for European scrap in the major export destinations of Turkey and India this week due to their low inventory levels.