Benelux exporters, relying on the Asian market due to slow purchases in Turkiye, began to act cautiously after the slowdown in Indian scrap demand and the drop in prices in Turkiye last week.
Due to the uncertainty, many exporters avoid stockpiling and simply follow the market trend, while others are buying HMS 1&2 80:20 scrap at €320/ton ($314) delivery price. While suppliers are targeting 330 euros and more per tonne, concerns have risen after Indian demand fell.
Last week, it was heard that two deals for HMS 1&2 80:20 scrap from Turkiye, $363/ton and $367/ton CFR EU origin, were concluded. The price difference between the deals is due to the fact that Turkish producers usually pay a premium for material ex-Germany.
According to Benelux suppliers, prices are at €320/t but demand is weak. Even if the material does not arrive, it is planned that they will decrease the prices.
Although European suppliers are aiming to sell HMS 1&2 80:20 scrap above $365/tonne CFR, Turkish mills' price targets are even lower than the last deal values. Due to Turkish mills' higher production costs, lower sales and pressures on steel prices, most market players believe prices will drop to $350/ton CFR levels in the coming days. In addition, the number of scrap offers in the Turkish market is increasing, while crude steel production continues to decline.
According to some Turkish producers, although the suppliers tried to keep the prices stable due to the demand in India, it was inevitable that the prices in Turkiye would decrease. The suppliers, who believed that the demand in Asia would replace the volume of Turkiye, thus lost their only weapon.
In India, shredded scrap has remained flat this week, at $450-455/ton CFR, while demand has decreased significantly compared to previous weeks.
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