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

The monthly Davis Index of Spanish consumer ferrous scrap increased €10/mt ($12/mt) over the past month following the conclusion of recent deals in early September.


Spanish steel producers have been leaning heavily on local ferrous scrap supplies in recent weeks given the significant arbitrage between domestic and seaborne benchmarks.


As a result of healthy supply availability domestic E3 benchmarks had traded at a €10-15/mt discount to HMS 1&2 imports over the past month.


More recently, however, one bulk ferrous scrap trader noted that domestic scrap grades had increased €10/mt over the past week in response to robust consumption of local supplies.


As a result, this has significantly reduced the domestic E3 ferrous scrap grade discount to seaborne imports of HMS 1&2 to €2/mt in early September from €10-15/mt the prior month.


The Davis Indexes for E1 (old thin), E3 (old thick) and E40 (shredded) increased €10/mt across all grades to stand at €203/mt, €223/mt and €233/mt delivered to mill, respectively. 


(€1 = $ 1.19)

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