Strong euro increases pressure on EU scrap exporters

Scrap exporters Benelux started the week cautiously as the euro strengthened against the dollar. The scrap market in the region is quiet, with exporters waiting to assess exchange rate movements before buying or selling to export markets.

Prices for HMS 1 & 2 80:20 further fell to 200-205 € /t from 205-210 € /t last week. Even a price of € 195 /t has been proposed by some exporters.

A Benelux scrap exporter says: “The exchange rate, which was 1.07 (per dollar) ten days ago, is up to 1.14 today. With such a high ratio and price ideas of Turkish factories, we cannot afford to purchase at a price of over 205 euros /ton. "

Another exporter, recalling the depreciation of the dollar against the euro, comments: “Last week we were ready to start negotiations at a price of $ 270 /t for Turkey at HMS 80:20. However, today, with rates of 1.14, we cannot sell at a price lower than $ 275 per ton compared to Turkey. ”

On the other hand, the demand in export markets remains at the same level. Turkish factories are not requesting deep sea scrap shipments, and Benelux scrap exporters are unable to complete sales to their Asian customers due to container shortages. Some exporters even had to cancel their previous sales due to higher shipping costs.

Another scrap metal exporter says: “It will soon be impossible to sell containerized cargo to Asia. They will need to accept bulk cargo. The availability of containers is decreasing every day. "

Although the Turkish factories started the week calmly, they are expected to increase deep sea requests this week. Scrap exporters, however, are curious how Turkish factories will accept higher scrap prices as their bids were low last week.