Davis Index’s July E1 (old thin), E3 (old thick), and E40 (shredded) indices jumped by €20-25/mt ($24-30/mt) delivered mill to €395/mt, €410/mt, and €430/mt, respectively.
Domestic ferrous scrap benchmarks increased over the past month following the conclusion of mill-yard negotiations in mid-July.
Small bulk import prices have remained relatively stagnant by comparison given the large quantities rumoured to be available in the shortsea market. That said, some UK-based ferrous scrap suppliers are heard to have refused to trade at current levels as they feel the material is undervalued.
As a result, some Spanish steel mills have had to rely on local merchants to secure sufficient volumes for their melting and smelting requirements.
Surging domestic rates are also partially linked to robust pricing action in the neighbouring continental ferrous scrap markets. For example, south German mills have been heard to have made sharp adjustments for monthly settlements in July, especially for bonus and prime scrap grades.