Scrap exporters in the Benelux have been forced to further decrease their prices despite weak inflow.

Exporters’ dock prices in the Benelux were pegged mostly at around €265/tonne ($292.5) on Monday, down from €270/t last week. However, those exporters that need to buy material are still paying €270/t levels in order to secure their purchases.

Two EU-origin bookings were concluded in the Turkish market last week, with prices at $346-346.5/t cfr Turkey for HMS 1&2 80:20. Turkish mills remained cautious about their scrap purchases due to rumours about energy price hikes from 1 August. However, no announcement confirming these hikes had been given by Monday deadline. Some sources from the energy industry, moreover, say that no increases are expected until October.

Although this provides respite for Turkish mills in terms of their production costs, they are still suffering from poor steel sales, which put pressure on steel prices and squeeze mills’ margins. Under the current conditions, market participants do not expect to see a recovery in scrap prices.

“Prices will either stabilise at current levels or slide further. I don’t think any mill would accept to pay higher prices for scrap. They’d rather stop production,” a trader tells Kallanish.

One mill contact says: “Considering the decline in rebar prices, scrap is still expensive. Current scrap prices leave us with no margin.”

Most market participants expect Turkey’s scrap demand to remain sluggish, with mills’ limiting their purchases to their urgent needs, at least for another month.

In India, scrap suppliers, citing supply shortages, are seen to have increased their price targets to $405/t cfr Nhava Sheva, up $5/t on-week. However, buyers, referring to weak global scrap prices, are seen bidding in the low $400s.