The weekly Davis Indexes for UK small bulk HMS 1&2 (80:20) and shredded ferrous scrap were flat at €135/mt ($146/mt) fob and €140/mt fob, respectively, on Friday.
UK-based small bulk exports have few realistic alternatives with the market becoming relatively illiquid following the closure of many European steel mills—particularly ferrous scrap-intensive electric arc furnaces—in response to contain the spread of COVID-19.
However, the Spanish government’s reclassification of the local steel industry as an essential and critical sector this week, was received by the market as positive news. The reclassification means, mills can legally resume commercial production and tender for scrap procurement.
The Davis Indexes for small bulk HMS 1&2 (80:20) and shredded ferrous scrap for northern Spain remained unchanged at €180/mt cfr and €185/mt cfr, respectively, as Spanish steel mills have only recently returned to seek offers from seaborne market.
($1 = €0.93)