Davis Index’s August E1 (old thin), E3 (old thick), and E40 (shredded) indices dropped by €17/mt ($20/mt) to €378/mt, €393/mt, and €413/mt delivered mill, respectively.
Domestic benchmarks are trading at a €25-30/mt premium to imported small bulk cargoes despite a material decline in Spanish ferrous scrap prices over the past month.
A Spanish ferrous scrap trader commented that the domestic market had been propped up by robust consumption and suppliers’ reluctance to sell at lower levels. Moreover, small bulk export rates have dropped much faster over the past four weeks as a result of healthier supply from major exporting nations, particularly the UK.
In contrast, the Spanish small ferrous bulk coaster market declined to €365/mt cfr northern Spain for E3 equivalent scrap grades last week.
($1 = €1.18)