Posted on 17 Mar 2020
Scrap prices in Benelux have dipped for the third consequent week amid weak export demand, uncertainty arising from the worsening coronavirus outbreak within the EU and falling scrap prices in Turkey.
Dock prices for HMS 1&2 80:20 which stood at €200-205/tonne delivered only a week ago, currently stand mostly at €185-190/t delivered. Lower prices are also available from some exporters.
“Last week some exporters that are in urgent need, accepted higher prices. But today, uncertainty prevails in the market and no one can foresee what will happen, where will coronavirus measures head to,” a Benelux scrap exporter tells Kallanish.
Although there has been some US and Baltic origin scrap bookings in Turkey, no EU-origin deal was heard last week. With the disadvantage of high €/$ parity, European suppliers were unable to lower their prices to expected levels last week. Today, however, as the parity disadvantage has disappeared, lower price offers from European suppliers are expected.
As closures of steel-producing mills have begun due to coronavirus quarantine measures in the EU, scrap demand, which was strong until last week, will likely slow down as further closures are expected.
On the other hand, due to the stagnant rebar market and spreading coronavirus in Turkey, Turkish mills’ scrap deep sea scrap demand is yet to resume, which increases the pressure on scrap prices. Benelux scrap prices will most likely drop further in both export and domestic markets this week.
The Kallanish weekly assessment for the Benelux HMS 80:20 export price falls to $244/t fob on 16 March, down $7.5/t week-on-week.
Source:Kallanish
