French, Luxembourg scrap prices flatten amid shutdowns

French and Luxembourg domestic scrap prices are flat again in December after the stability seen in November. Some large merchants have lowered their scrap intake, but this is not pressuring availability as mill demand for scrap remains poor due to the European long steel downturn.

Lower sales of merchant bar and wire rod, and poor rebar sales are forcing some mills to shut down production for the month of December. Some will not buy any scrap while others will buy reduced tonnages in France, Belgium and Luxembourg.

The European price landscape is also showing mostly flat prices, with the market said to be “quiet”. Italian and Austrian mills are paying the same prices as in November, while Germany is going through a similar situation with mills and merchants negotiating flat on-month prices for old scrap and new scrap, sources tell Kallanish.

So far, French and Luxembourg domestic shredded E40 grade is pegged at €345-360/tonne ($362-377) delivered on average. The mixed E8 grade remains flat at €350-360/t on average. Demolition E1C and E3 are on average at €290-310/t and €330-340/t delivered respectively this month, sources suggest.

Meanwhile, scrap prices in the Benelux are seen continuing to rise amid tight supply and export demand. Most exporters’ dock prices were pegged at €305-315/t delivered on Monday depending on the region, up from €290-305/t a week earlier (see Kallanish 6 December newsletter). However, higher prices were also available from a few exporters that were purchasing more aggressively. Prices in largest export market Turkey have since inched up again.

Natalia Capra France