European scrap activity awakens surprisingly amid holidays

European scrap values seem to be on the verge of increasing this month in an unexpected turn of events that is seeing mills search for material despite the August holidays. This is mostly due to the low availability of new scrap grades, such as new arisings E8 and the high shredded automotive quality, market participants tell Kallanish.

Scrap merchants in Eastern European countries, Germany and Italy say they will not sell material unless they are paid some increases. They are supported by reduced collection of E8 from the automotive industry and the recent stoppages at re-rollers in southern and Eastern Europe to balance supply with demand. European sources expect the scrap market to become lively again in September.

Sales of some finished long products and coil derivatives proved to be better than expected in July but uncertainty is still looming.

Italian scrap merchants are asking for €20-30/t ($20.5-30.7/t) increases. This should bring the E8 mixed grade to the level of €380/t delivered in Italy. Germany and some Eastern European countries such as Poland are adopting a wait-and-see attitude but talking about similar hikes. In Austria, mills are looking for the high E8 grades but availability is said to be low.

By the end of this week, August prices are expected to become more definite in Europe.

Natalia Capra France