European domestic steel sections prices increased over the week to April 21, as market sources reported higher workable levels amid positive market sentiment.
S&P Global Platts’ European medium sections price (category 1, S235 JR) was assessed at Eur735/mt delivered April 21, up Eur12.50/mt on week.
One distributor source in Benelux reported a deal for 2,000 mt at Eur730/mt delivered Benelux booked the week ended April 18, as the market showed strong demand. He told Platts that the economy is good while the measures to prevent coronavirus are also in place, which is improving the overall sentiment.
The source also noted that lower than 1,000 mt tonnage deals will probably be Eur10/mt higher, up to around Eur740/mt delivered Benelux.
Another distributor source told Platts that mills are expecting scrap prices to inch up further in the near term amid strong order books, driving prices higher for medium sections.
“It is very strange that the international scrap is under pressure, but here European mills are anticipating higher prices for the month of May. And they have good order books. Lead times are up to June,” he told Platts.
Platts assessed Turkish imports of premium heavy melting scrap 1/2 (80:20) April 21 at $427.50/mt CFR, up $7.50/mt day on day.
In Northern Europe, Platts’ April assessment for Northern European domestic shredded scrap was Eur357.50-362.50/mt delivered, down month on month from Eur365-370/mt delivered in March.
In addition, the source said the ongoing export rebate situation in China is providing a good opportunity for Turkish and European mills to sell at higher prices in the export market than in the domestic market.
— Rabia Arif, Staff