Davis Index’s weekly northern Spain HMS 1&2 (80:20) and shredded small bulk ferrous scrap indices surged by €31/mt ($38/mt) and €28/mt to €318/mt cfr and €328/mt cfr, respectively, on Friday.
This week, shortsea bulk ferrous scrap tags were driven higher by stronger EU dockside purchase prices and robust demand from competing shortsea and deepsea markets.
While the last HMS 1&2 (80:20) cargoes sold to northern Spain were in the range of €310-315/mt cfr, earlier in the week, EU dockside purchase prices smashed through these rates in the past two days.
As a result, Davis Index understands some UK and North European ferrous scrap suppliers have lifted their offers of HMS 1&2 (80:20) to the “unrealistic” levels of €360/mt according to a Spanish buyer.
Ravenous ferrous scrap demand has now seen Turkish mills bring purchases forward for March shipment as they buy 60-90 days ahead compared with their traditional 30-day window.
This has partly contributed to the Turkish HMS 1&2 (80:20) ferrous scrap import index jumping by $48/mt over the past week to $447.94/mt on Dec 18.
Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded also climbed by €24/mt and €22/mt compared with the prior week to €292/mt fob and €302/mt fob, respectively, on Dec 18.
(€1 = $1.23)