Turkey’s recovery lifts Benelux scrap prices
Benelux scrap prices, which have been on a downtrend since the beginning of April, have recovered following the rebound seen in Turkish scrap prices.
Rebounding from €215-220 last week, Benelux exporters’ dock prices for HMS 1&2 80:20 increased to €260-275/tonne ($271-287) delivered levels on Monday.
Following a $40/t surge in imported scrap prices and improved demand in Turkey last week, European exporters have increased their collection prices. The price of HMS 1&2 80:20, which decreased to $320/t cfr Turkey levels the previous week, has now jumped to $361-362/t cfr on the latest bookings concluded towards the end of last week. A southern Turkish mill bought 30,000 tonnes of HMS 1&2 80:20 and 10,000t of shredded at average $368/t cfr, while a Marmara mill bought 18,000t of HMS 1&2 80:20 at $361/t and 2,000t of bonus at $381/t cfr.
On Monday, Benelux suppliers were seen targeting even higher levels amid Turkey’s strong scrap demand.
One Benelux scrap supplier tells Kallanish: “The exporters that sold at dipped prices are regretting this now. Turkish mills resisted for too long not to buy material. During this period, scrap suppliers had to bear big losses. Now upon Turkey’s return, suppliers will likely resist selling at Turkey’s target prices.”
Another supplier says that scrap flow into the yard is slow at €365/t delivered and further upward price adjustments seem inevitable.
Amid a low number of offers in the market and strong buying interest, most market participants are seen expecting premium HMS 1&2 80:20 prices to approach $400/t cfr Turkey this week.
Indian mills, which recently concluded bulk cargoes, meanwhile, are seen facing shipment problems. Some sellers are asking buyers to renegotiate, claiming they cannot offer the scrap as per the contracted price. Following the recovery seen last week, the latest offers for containerised shredded are seen at $460-465/t cfr Nhava Sheva and $470-475/t cfr Qasim. They were at $415-420/t cfr Nhava Sheva last week.
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Anonymous
Very good overview of the weekly steel market.
Anonymous