The weekly Davis Index for HMS 1&2 (75:25) in the ARAG region climbed by €2/mt ($2/mt) to €330/mt delivered dockside on Tuesday, though market sentiment turned bearish.
Some European ferrous scrap exporters raised collection prices, requiring tonnages for their cargoes. Others, however, were more cautious, preferring to keep collection prices unchanged after Turkish importers began insisting on lower prices and widened the bid-offer gap further.
Turkish buyers revised their bids downward after scrap supply increased and they achieved lower prices for US and Baltic material. Thus, bids for European-origin HMS 1&2 (80:20) dropped to $440-445/mt cfr this week, while offers were at $460/mt cfr last week, resulting in no new deals.
The weekly Davis Indexes for HMS 1 and bonus scrap in the ARAG region both increased by €4/mt ($5/mt) to €342/mt delivered dockside and €347/mt delivered, respectively, on Tuesday. Collection of these grades is more difficult now amid stronger demand for them in the European domestic market.
(€1 = $1.19)