Davis Index’s northern Spain HMS 1&2 (80:20) and shredded small bulk weekly ferrous scrap indexes were unchanged at €388/mt ($458/mt) and €408/mt cfr, respectively, on Friday.
The extent of declines in Spanish import prices has been limited by relatively stronger continental European ferrous scrap benchmarks over the past couple of weeks.
That said, some UK suppliers are rumoured to be sitting on relatively large stockpiles and have also been applying downward pressure to this regional shortsea small bulk market. Despite this weakness in shortsea pricing dynamics, European ferrous scrap demand fundamentals are heard to be well-supported by strong steel order books out to the end of the year.
One Spanish ferrous scrap buyer commented that prices are expected to revert to mean once the wealth of suppliers’ ferrous scrap inventories have been cleared.
Davis Index’s UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded indexes dropped by €5/mt to €350/mt and €370/mt fob, respectively, during the week.