Davis Index’ weekly northern Spain HMS 1&2 and shredded small bulk ferrous scrap indices increased €4/mt ($5/mt) over the past week to €237/mt cfr ($277/mt) and €247/mt cfr, respectively, on Nov 13.
Shortsea bulk ferrous scrap suppliers to Spain were able to push through modest prices hikes of €4/mt over the past week, though not as much as they would have hoped to achieve, given strong increases at UK docks and on major seaborne trade routes.
For example, Turkish HMS 1&2 (80:20) ferrous scrap import prices have jumped almost $13/mt over the past week while UK dockside HMS 1&2 dockside purchase prices have lifted £7-8/mt ($9-11/mt) over the same period.
Spanish mills have been able to withstand the pressure of suppliers trying to push through more robust increases, as steel output and ferrous scrap consumption rates remain relatively subdued; creating a plethora of local supply availability to fall back on.
As a result, shortsea ferrous scrap suppliers have looked to allocate more cargoes towards alternative, well-established routes, such as transhipment to Turkey through northern Europe, given that they are able to secure higher prices.
The indices UK small bulk ferrous scrap HMS 1&2 (80:20) and shredded climbed €6/mt compared with the prior week to €211/mt fob and €221/mt fob, respectively, on Nov 13.
(€1 = $1.18)
(£1 = $1.31)