Posted on 10 Sep 2024
Scrap prices in the Benelux remain mostly unchanged from last week amid the global uncertainty arising from the recent slump in China.
Benelux dock prices stood mostly at €285/tonne ($314) delivered on Monday. However, some exporters that required urgent material faced paying higher values at above €290/t.
Although domestic suppliers are not willing to sell at below €300/t and flow remains weak at €285/t, exporters continue to refrain from paying collectors more as they face price resistance in Turkey, the largest export destination.
Amid the slump in the Chinese market and gradually decreasing billet offers from Asia last week, Turkish producers approached their scrap purchases cautiously and had a poor appetite for concluding deals despite their requirements.
European exporters seeking €370/t cfr Turkey for HMS 1&2 80:20 failed to attract interest and received bids at below $365/t cfr.
A single EU-origin deal from last week was heard in the market on Monday. A western Turkish mill bought HMS 1&2 80:20 at $366/t cfr and bonus grade $386/t cfr, while US suppliers sold HMS 1&2 80:20 at $370/t cfr and a Baltic supplier sold at $368/t cfr.
In the European domestic scrap market, prices fell on the return from holidays.
A Benelux supplier tells Kallanish: “Although flow is very poor, we do not foresee an increase in prices in the near term and thus are keeping our levels at around others’, amid the caution in the global market arising from China which is providing no consistency. If we experience a slight recovery in flow at €285/t, we will test lower levels. I don’t find the domestic suppliers’ target of €300/t realistic.”
Meanwhile, the euro, which strengthened to $1.113 on 6 September, has had a weaker start to the week at $1.103, decreasing pressure on exporters.
In India, another major market for scrap, prices show no signs of recovery amid cheaper steel imports from China, an extended monsoon season and lack of governmental funding for infrastructure projects.
The price of containerised shredded stood at around $390/t cfr Nhava Sheva, with buyers targeting $5-10/t lower.
Source:Kallanish
