Posted on 25 Oct 2022
In addition to lacklustre Turkish demand, weakened Indian demand caused Benelux scrap prices to edge down last week.
Exporters’ dock prices, which stood at around €320/tonne last Monday, are now at €295-310/t ($290-305) delivered, following their initial drop to €305-310/t on Friday.
Although scrap flow is yet to improve in the Benelux, exporters, who have been relying on Asian demand for a while, are exercising caution following the slowdown in Indian scrap activity.
There was a rumour circulating on Monday of an EU-origin scrap sale, although details were not available before deadline.
Following the US-origin HMS 1&2 80:20 booking last week at around $360-363/t cfr Turkey, most market participants already deem workable levels for US scrap to be at below $355/t cfr.
“No mill would pay above $355/t cfr for premium HMS 1&2 80:20 as finished steel prices are coming down. I doubt they will even accept $355/t today,” says a scrap supplier.
Besides the weak demand, competitive imported billet offers at below $550/t cfr Turkey are also exerting pressure on scrap prices. On the other hand, amid weak demand, rebar prices are continuing to fall further in Turkey, with $655/t ex-works available from some mills on Monday.
An EU-origin supplier tells Kallanish: “Sentiment has worsened and market expectation has fallen below $340/t cfr now. Most likely, scrap will fall to $320-330/t cfr levels under current conditions.”
In India, after prices declined amid weakened demand, offers for bulk HMS 1&2 were heard at $410-415/t cfr Kandla and Chennai towards the end of last week. Offers and bids for shredded were pegged at $435-440/t and $425-430/t cfr respectively. No offers were heard on Monday due to the Diwali holiday.
Source:Kallanish
