Davis Index’ monthly Spanish consumer ferrous scrap indices increased by €5/mt ($6/mt) over the past month following the conclusion of recent deals in mid- to late-June.
Domestic ferrous scrap prices for Spanish E3 (HMS 1&2 equivalent) reached a recent peak of just over €220/mt delivered to mill at the end of May, as local and import prices reluctantly tracked the robust strength in major seaborne trade routes.
Local mills were upset about having to pay relatively higher prices given that domestic steel production and scrap consumption rates had not recovered sufficiently to warrant prices climbing to levels that some considered “out of the market.”
However, the more recent improved efficiency in local supply chains, following the opening of industrial sectors in response to easing lockdown restrictions, has resulted in increased ferrous scrap availability in the first half of June.
This has enabled some Spanish steel producers to pare back the hikes pushed through by suppliers at the end of last month and normalize ferrous scrap benchmarks to what some mills believe represents “fair value.”
The indices for E1 (old thin), E3 (old thick) and E40 (shredded) increased by €5/mt across all grades to stand at €195/mt, €215/mt and €225/mt, delivered to mill.
(€1 = $ 1.12)