Davis Index’ monthly Spanish consumer ferrous scrap indices increased by €5/mt ($6/mt) over the past month following the conclusion of recent deals in mid-August.

 

Prices for domestic scrap grades have remained stubbornly low when compared with developments in major seaborne trade routes, particularly to Turkey, over the same period.

 

Spanish steel producers and ferrous scrap traders noted that better local supply had significantly decreased their reliance on import cargoes. In fact, availability has improved to the point where domestic HMS 1&2 (80:20) benchmarks traded at a €10-15/mt discount to imports of the same grade in August.

 

However, while local scrap supply has improved from the COVID-19 afflicted levels, it is highly likely reduced mill capacity utilization has exacerbated the availability of material in the market.

 

Spanish ferrous scrap consumption has deteriorated in tandem with steel production, as mills have scaled back output in response to decimated finished steel demand.

 

The Davis Index indices for E1 (old thin), E3 (old thick) and E40 (shredded) increased by €5/mt across all grades to stand at €193/mt delivered to mill, €213/mt delivered, and €223/mt delivered, respectively. 

 

(€1 = $ 1.18)

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