EU steel sections prices increase as mills raise offers

European domestic steel sections prices increased over the week to March 24, as producers raised offers following increases in domestic EU scrap prices.

Platts’ European medium sections price (category 1, S235 JR) was assessed at Eur735/mt delivered March 24, up Eur15/mt on week.

One European mill source told Platts that they have increased their mill offers to Eur740/mt delivered. “This week we are not accepting anything below that level. We are seeing some demand at these levels. But buyers are only buying what they strictly need,” he said.

One distributor source in the Benelux region reported a deal for 1,000 mt at Eur740/mt delivered, adding that demand is good at the moment.

Another distributor source, however, noted that prices are almost stable putting a tradable value for medium sections at Eur710-Eur720/mt delivered.

“Mills in Europe expect scrap prices to go up in April, but I am a bit surprised because international scrap is going down a lot,” he told Platts.

Platts assessed Turkish imports of premium heavy melting scrap 1/2 (80:20) March 24 at $415/mt CFR, down sharply from a recent high of $462.50/mt CFR on March 8.

In Northern Europe, S&P Global Platts’ March assessment for Northern European domestic shredded scrap was Eur365-370/mt delivered, up on the month from Eur330-335/mt delivered in February.

The source also expects demand to slow down a little in the near term as Easter holidays approach. In addition, with the month of Ramadan expected around mid-April and different levels of lockdowns currently being imposed in various European countries, he thinks that the market might get a little quieter.

— Rabia Arif