European scrap seen increasing €40

European scrap prices are about to increase significantly as merchants are beginning to ask for €20-40/t hikes in Italy, France and Germany, depending on grade and availability, sources say. The market is being pushed by the latest scrap price increase announcements from large steelmakers for May.

One northern European steelmaker is said to be offering a month-on-month increase of €40/t ($48) for the high-quality grades of new arisings E8 and shredded E40, and a €30/t hike for lower, older grades. The tight supply of E8 and E40 in northern Europe, together with producers’ strong order books, are boosting the need for scrap. However, E8 and E40 grades are in high demand also in southern Europe and particularly in Italy.

Thanks to April’s high prices and fears of declines, many European scrap sellers sold as much as they could last month, with the result of depleting their stocks. This month in Italy, France and Germany E8 is seen reaching €410/t for the mixed grade and €440/t for the high grade. E40 is also forecast to go over the level of €400/t delivered, sources say.

Since scrap values started to increase this year, prices in European countries are aligning, Kallanish notes.

Natalia Capra France