The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region dropped by €13/mt ($16/mt) to €300/mt delivered dockside on Tuesday amid a bearish export market and sluggish demand.
Ferrous scrap exporters from the Netherlands (Amsterdam, Rotterdam) and Belgium (Antwerp, Ghent) continued to cut collection prices as Turkish importers remained inactive and waited for lower buying prices. The negative sentiment in the market was fueled by a sale from the UK at $408/mt cfr for HMS 1&2 (80:20) and at $419/mt cfr for shredded scrap to an Izmir-based mill.
Some European suppliers were surprised by the sale from the UK as they expected higher prices around $420-430/mt cfr Turkey for HMS 1&2 (75:25) and HMS 1&2 (80:20). Turkish mills, however, will now target buying closer to the $400/mt cfr mark.
The weekly Davis Indexes for HMS 1 and bonus scrap in the ARAG region both declined by €13/mt ($16/mt) to €310/mt delivered dockside and €315/mt delivered, respectively, on Tuesday.
(€1 = $1.22)