European scrap contracts to hike in March

European scrap prices will increase in March. With Turkish demand strong, merchants in France, Italy, Germany and Eastern Europe are expected to ask for some €30/tonne ($31.7) increase, although it is still too early to be sure, Kallanish hears.

In some Eastern European countries such as Romania, sellers are seen asking for as much as $50/t increases month-on-month, although some sources consider these levels an exaggeration. In Poland, it is still early to quantify March hikes, but two sources believe they will be in the range of €20-30/t.

In Germany and Italy, mills have already granted €10/t increases for contracts with prompt delivery within the first week of March. This has pushed E8 mixed grade in these two countries to €390-400/t delivered and E1 to €360/t delivered.

In Italy, mills are cautious over increases but are looking for material. Rebar, merchant bar and wire rod markets in Western Europe continue to be affected by low sales. Some mills will implement production cuts in March, which should cause scrap demand from these producers to lower. Flats and specialty steel producers however will buy high scrap volumes thanks to their filled order books.

Natalia Capra France