Davis Index’s E1 (old thin) and E3 (old thick) benchmarks climbed by €2-3/mt to €375/mt and €390/mt, respectively, while E40 (shredded) jumped by €16/mt to €405/mt delivered mill in Spain.
Spreads for Spanish E3 (HMS equivalent) and E40 (shredded) widened by €15-20/mt over the past month following the conclusion of mill-yard negotiations in mid-June.
Some mills have been opting to procure shredded material in response to the scarcity of prime scrap grades from impoverished manufacturing activity. A Spanish mill buyer commented that the recent resurgence in import offer prices over the past few weeks had encouraged them to source more material from local suppliers.
In fact, Davis Index has heard that small bulk import cargoes of HMS 1&2 (80:20) are now offered at close to €400/mt cfr Northern Spain from UK and EU exporters.