Following their rebound the previous week, scrap prices in the Benelux continued to increase last week.

Dock prices in the Benelux were mostly pegged around €315/tonne ($308) delivered on Monday, up from €300-315/t on Monday last week.

Turkey’s scrap demand is seen to have slowed, specifically in the second half of last week. Demand for European scrap in India, however, remained strong for both bulk and containerised cargoes due to the recovery seen in finished steel demand in that country. Although the price rises seen in Turkey last week have also contributed to the scrap price increase in India, Turkish values have softened again following an increase in the number of offers.

Turkish mills have been hit with another rise in natural gas prices as of October, and are therefore seen remaining cautious with their scrap purchases. Although European suppliers have offered HMS 1&2 80:20 at above $370/t cfr Turkey, following the recovery in Turkish demand the previous week, the latest bookings from various European suppliers were done at $364-367/t cfr levels last week.

Turkish producers are targeting even lower prices for scrap now, following the almost 40% hike in natural gas prices on Friday.

A scrap supplier tells Kallanish: “Although there has been no adjustment for electricity prices following the September rise for now, producers are expecting an increase soon. On the other hand, natural gas price hikes are also expected to continue in November. Mills, with further squeezed margins, are likely to purchase less scrap amid lower production.”

With overall Turkish steel production volumes continuing to fall, one southern mill is seen to have halted production again for a month, following its 15-day September halt, due to high scrap and energy prices.

In the Indian sub-continent, scrap prices jumped last week due to strong scrap demand amid a recovery in steel demand and improved sentiment. Offers for UK- and EU-origin containerised shredded scrap stand at $450-455/t cfr Nhava Sheva, up from $435-440/t cfr a week earlier.