Davis Index’s monthly Spanish consumer ferrous scrap indices increased by €35-50/mt ($42-61/mt) following the conclusion of recent deals in early December.
Spanish mills were obliged to pay significantly higher for their domestic scrap purchases over the past month as prices tracked developments in the UK and EU shortsea markets.
Robust Turkish purchasing activity has driven the benchmark HMS 1&2 (80:20) ferrous scrap import index $83.5/mt higher over this period to $380/mt, cfr Turkey, on Dec 8.
More muted hikes materialized in the Spanish import market as buyers pushed back based on meagre domestic finished steel prices and margins.
As a result, Spanish import prices for HMS 1&2 (80:20) only jumped €35/mt to €268/mt, cfr northern Spain, over the past four weeks; prompting domestic suppliers to follow suit by similar amounts.
Moreover, one Spanish scrap buyer commented that they were obliged to pay higher rates for local material to prevent volumes from heading towards the export markets.
The Davis Index indices for E1 (old thin), E3 (old thick), and E40 (shredded) increased by €35-50/mt €263/mt delivered mill, €268/mt delivered, and €273/mt delivered in December.
(€1 = $ 1.21)