Davis Index’ weekly northern Spain HMS 1&2 and shredded small bulk ferrous scrap indices increased €8/mt ($9/mt) and €13/mt over the past week to €233/mt and €248/mt cfr, respectively, on September 11.
Spanish mills had performed commendably in recent months by staving off significant pressure from EU and UK scrap suppliers who have tried numerous times to push prices higher.
More recently, however, recent strength in the local ferrous scrap market, which had been a useful crutch for steel producers, brought import and domestic prices close to parity.
Demand on local ferrous scrap supplies is also likely to have been exacerbated by the resumption of output from some domestic electric arc furnaces.
As a result, Spanish ferrous scrap buyers eventually conceded in negotiations this week as they accepted price hikes of €8-13/mt depending on grade.
Similarly, Davis Index’ UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded climbed €3/mt and €6/mt over the same period to €206/mt and €219/mt fob, respectively, on September 11.
(€1 = $1.18)