Davis Index’s northern Spain HMS 1&2 (80:20) and shredded small bulk weekly ferrous scrap indices nudged €3/mt ($4/mt) higher to €388/mt and €408/mt cfr, respectively, on Friday.
Spanish ferrous scrap import prices nudged higher from recent lows over the past week, despite a significant arbitrage building between local and seaborne markets. The equivalent local HMS 1&2 (80:20) grades (E3) are not available for anything lower than €410/mt on a delivered mill basis.
A Spanish-based ferrous scrap trader commented that they would be a large buyer of seaborne material at these levels if they were a northern Spain-based steel producer.
Import prices are likely to have been handicapped by relatively low UK fob prices, given that some bulk exporters are rumoured to be sitting on large piles of inventory.
Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded indices dropped by €5/mt to €355/mt and €375/mt fob, respectively, during the week.