Scrap
prices in the Benelux continue to fall amid weak demand in export destinations.
Exporters’ dock prices, which were at around €330-335/tonne a
week ago, were mostly at $320/t ($348) in Belgium and €330/t ($360) delivered
in the Netherlands on Monday.
Demand in major export destinations, Turkey and India, remains
weak as buyers expect lower prices. However, tight supply in the EU continues
to be an issue for exporters who are struggling to source a sufficient tonnage
of material at lower prices.
Some European exporters who short-sold are seen being forced to
pay higher prices to fill the sold vessels.
Turkish mills are seen taking their scrap purchases slowly due
to sluggish rebar sales in both export and domestic markets. Although there are
some mills inquiring about scrap, it is unclear if they require material or are
just gauging suppliers’ positions.
Three deep-sea bookings were heard towards the end of last week.
While a Baltic supplier sold HMS 1&2 80:20 at $400/t cfr Turkey, the same
grade was sold by a US supplier at $410/t cfr. The price spread between these
two deals surprised market players, with most finding the US value not
representative of a market where rebar prices are falling.
While European and US suppliers are aiming to sell HMS 1&2
80:20 at above $405/t and $410/t cfr respectively, Turkish mills are seen
continuing to push for lower prices, below $400/t cfr. US suppliers, however,
managed to reach targeted prices last Friday.
A Turkish mill tells Kallanish: “Turkey’s
steel production is currently limited to the domestic market’s required volume.
However, despite production being halved, mills have for the past two months
bought as much scrap as in usual times. I think mills would rather wait now
instead of buying scrap at above $400/t cfr and bearing a loss.”
A European supplier is heard offering HMS 1&2 80:20 at
around $410/t cfr Turkey from the Netherlands.
In India, mills started buying cargoes that have been redirected
from Pakistan due to letter-of-credit issues in the country. A few cargoes were
concluded at $445/t cfr Nhava Sheva for shredded last week, while offers were
at around $445-450/t cfr on Monday. Buyers’ interest is weak, however, as they
feel prices will continue to edge down.