French and Belgian scrap prices are forecast to remain stable compared to June, with the lower grades possibly losing €10/tonne ($11) as new contracts are being negotiated for the month of July.
Despite hunger for material and full order books, prices of all long products in these countries, from wire rod to rebar and merchant bar, are losing momentum. Mills in France, like in southern European countries, will buy less scrap this month in view of the summer closures in August. Sales activity for longs and scrap is said to be quiet, in line with southern Europe, sources tell Kallanish.
Scrap demand remains strong for the higher grades, E40 shredded and E8 new arisings. E8 is seen remaining in the €450-460/t delivered range for the lower grade and €470-490/t delivered for the very high quality. This however may increase slightly considering the current short supply. Prices for lower quality E1C may lose €5-10/t this month on account of lower demand. June’s values for E1C were €400-410/t delivered in France and the Benelux.
Meanwhile, strong tension and demand is still being felt in the Italian market, particularly for the high grades of which prices in June went through the level of €500/t. Another week-on-week €15/t increase for a very good E40 grade was paid last week, pushing this material to €520/t, and the high E8 grade to €540/t delivered.
Natalia Capra France