Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Davis Index’ weekly northern Spain HMS 1&2 (80:20) and shredded small bulk ferrous scrap indices remained unchanged at €220/mt ($260/mt) and €230/mt cfr, respectively, on Friday.

 

Negotiations in the small bulk ferrous scrap market appear to have been quite colorful over the past week despite the lack of fresh trades and price action. 

 

UK and European ferrous scrap suppliers lamented the stubborn behavior of some Spanish buyers, who will not budge from prior bids of €220/mt for cargoes of HMS 1&2 (80:20). Bulk exporters assert that the strength in major seaborne benchmarks, particularly to Turkey, should, by proxy, mark the Spanish HMS 1&2 (80:20) import market at around €225/mt.

 

One UK-based trader commented that once the most recent developments are incorporated into the next round of offers and Spanish mills could see themselves paying up to €230-235/mt next week.

 

Spanish ferrous scrap importers, on the other hand, appeared to be content to sit back on their bids citing sufficient domestic supply availability for current, but heavily reduced production schedules.

 

Davis Index’ UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded indices were also unchanged over the same period at €205/mt and €215/mt fob, respectively, on Friday.

 

(€1 = $ 1.18)

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