Scrap prices in Benelux remain mostly unchanged from last week as exporters fail to source material at lower levels amid thin inflows.

On Monday, dock prices in Benelux stood mostly at €280-285/tonne ($289-294) delivered, little changed from last week, notes Kallanish. However, they are higher on a USD basis due to the euro's appreciation to $1.031 on Monday from $1.019 a week earlier.

Material flow remains the main issue amid winter conditions. Although some exporters tried decreasing their dock prices, they were unable to procure material at lower levels and have been forced to increase their prices back to €280/t. Even at €280/t, the flow is very thin, forcing exporters to pay even higher for urgent requirements.

A Benelux exporter tells Kallanish: “The flow into yards is insufficient at €280/t. Consequently, we pay €285/t to our major suppliers. I think, all exporters have different pricing strategies ranging between €280-290/t depending on their suppliers,”

In Turkey, the major export market, Turkish mills that placed bids at $325/t cfr for European HMS 1&2 80:20 last week failed to buy from European suppliers at this level. Although deal prices fell last week to $327-328/t levels, the latest EU-origin HMS 1&2 80:20 deal appeared at $329.5/t cfr from the Netherlands, while some other bookings exceeded $330/t cfr. Most market participants do not see further room for price falls. On the other hand, the availability of some distressed cargoes and poor steel sales in Turkey continue to exert strong pressure on scrap prices. 

An exporter says: “Maybe the prices will rest at current levels for a while but I do not expect an improvement in scrap prices. Under current conditions, scrap cannot see positive progress as long as Turkish steel mills suffer from steel sales.”

While the Syrian interim government's decision to increase customs duty for imports from Turkey by 300-500% damaged expectations in Turkey, the whole market is now focused on US President Donald Trump’s actions in his second term and the Israel-Gaza ceasefire.

In India, another major market for European exporters, the imported scrap market is struggling due to a weak rupee and slow domestic steel activity. Prices for containerised shredded from the US, UK and EU stand at around $370-375/t cfr, down $10/t from last week. However, demand remains weak with domestic scrap, pig iron, and DRI seen as more cost-effective alternatives. Market sentiment is also impacted by uncertainty before the Union Budget. Similarly, Pakistan and Bangladesh are seeing weak demand, with economic instability further impacting the market.