Davis Index’s northern Spain HMS 1&2 (80:20) and shredded small bulk weekly ferrous scrap indices fell by €5/mt ($6/mt) to €400/mt and €420/mt cfr, respectively, on Friday.
Spanish ferrous scrap import prices tracked lower over the past week in response to a raft of fresh offers from the UK, north European, and Baltic-based shortsea suppliers.
A Spanish trader commented that suppliers might be long on material and are fearful of a potential retracement in ferrous scrap prices while holding large inventories.
These views were echoed by a UK-based small bulk supplier who noted that one of the country’s largest exporters had cut dockside rates and was shifting material between its yards by vessel.
Davis Index’s Turkish HMS 1&2 (80:20) ferrous scrap import index has softened by $8/mt over the past 10 days to $496.91/mt cfr Turkey.
That said, Davis Index has confirmed that a large German steel producer has paid €510-515/mt for obsolete ferrous scrap grades (E3), equivalent to HMS #1, for early July settlement.
That means there is now a €150/mt spread between German mill settlements and northern European HMS 1&2 (80:20) dockside purchase prices of €360-365/mt delivered.
With German mills paying up to divert material from traditional export markets, this will constrict the regional supply-demand balance further and result in this recent pullback being only temporary.
Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded indices were little changed at €380/mt and €400/mt fob, respectively, during the week.