While a limited number of transactions were reported in the international ferrous scrap and semi-finished markets, downward pressure on prices became apparent. Turkish producers are taking cautious steps, while weak demand and political uncertainties in the European markets continue to dictate the direction of prices.
Uncertainties in Scrap Trade Persist: Signals from Europe are Unclear
By the end of last week, rumors were circulating in the industry that some import transactions had been carried out, but many of these reports were later unverified or found to be related to past transactions. Particularly, claims regarding shipments from Germany, the Netherlands, and Finland were corrected by the buyers as being transactions from previous dates.
As of Monday, export offers for European-origin scrap were generally collected at $373/t CFR levels. Turkish producers, however, continued to exert downward pressure on the market by offering prices lower than Friday’s $365/t.
“There is a lot of misinformation in the market right now. Conflicting news is coming in about some European-origin shipments. This is causing both buyers and sellers to wait. On the Turkish side, there is a strong signal that price declines will continue. Buyers are seeking clarity, but uncertainty remains high.”
“Many ports in Europe are currently offering, but it’s difficult to get a serious response. On the buying side, everyone is being very cautious due to political and economic uncertainties. The perception of risk has increased, especially for shipments to Eastern Europe and the Mediterranean region.”
Decline Continues in Benelux Ports
Dock prices in the Benelux region have dropped to the 290–295€ range. Shipyards are hesitant to make purchases due to rising global trade tensions and political fluctuations in Türkiye. While April expectations in the European domestic market are upward by 5–12€, the overall outlook still calls for caution.
Tensions in the Chinese and U.S. Markets
In the U.S. scrap market, prices in the Southeast and River regions have stabilized at -$20/t for primes, -$30/t for HMS, -$30/-40/t for PNS, and -$40/t for shred scrap, while buyers in the Ohio Valley offered -$40/t for all categories. Pricing is yet to be determined in the Midwest and Northeast markets. Pressure continues in the market due to high domestic prices, weak demand, and surplus inventory.
Chinese billet prices have been reduced to the $470–475/t range, with offers dropping to $465/t during the day. Turkish producers have started showing interest at these levels, and it was reported last week that a producer purchased 30,000 tons of billet at $482/t. The current price from Chinese Dexin is $468/t. Although the Malaysian market is being explored as an alternative, access is limited.
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