Davis Index’s weekly northern Spain HMS 1&2 (80:20) and shredded small bulk ferrous scrap indices declined by €4/mt ($5/mt) to €228/mt cfr and €238/mt cfr, respectively, on Friday.
Spanish ferrous scrap import prices softened further over the past week, largely tracking developments in major seaborne trade routes, particularly to Turkey.
Some longs producers have scaled back output though cement production, a lead indicator of construction activity, increased by 5.3pc to 1,563mt in August compared with the prior month.
Davis Index has heard anecdotal evidence that the number of new domestic private construction projects has slowed significantly over the past few weeks. As a result, Spanish mills have been able to negotiate modest discounts on small bulk ferrous scrap cargoes in response to relatively low production schedules.
In fact, Spain only produced 696,000mt of crude steel in August, 32.5pc lower compared with the same month a year earlier. That said the figure will likely increase for September and October, following the restart of ArcelorMittal Sestao’s 1.8mn mt per annum electric arc furnaces.
Meanwhile, Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded declined by €4/mt and €7/mt to €194/mt fob and €204/mt fob, respectively, on October 2.
(€1 = $1.17)