French and Luxembourg domestic scrap prices are increasing in January contracts by €25-30/tonne ($26-32) month-on-month, depending on the mill and its need for this month. The increases are mostly due to rising international scrap prices and short supply of shredded and chiselled E40 and E1 grades.
E8 new arisings remains in large supply and one of the least fashionable grades with buyers after E1, E3 and E40. Demand is considered to be at average levels from most steelmakers, apart from a smaller one that is well stocked and not in need of material.
The European price landscape is also showing €25-35/t increases depending on each country in the first contracts of the year, with steelmakers actively looking for domestic and imported scrap, sources tell Kallanish.
So far, French and Luxembourg domestic shredded E40 grade is pegged at €370-380/t delivered on average. Rather unpopular, the mixed E8 grade remains flat at €350-360/t on average. Demolition E1 and E3 are on average at €320/t and €345-355/t delivered respectively this month, sources suggest.
Meanwhile, scrap prices in the Benelux rose further throughout last week amid strong export markets, with dock prices reaching €350/t delivered. The latest EU-origin booking in Turkey was concluded at $414/t cfr Turkey for HMS 1&2 80:20 last week. Although Benelux exporters were aiming to sell at above $415/t cfr, Turkish mills withdrew from the market after the number of imported scrap offers increased (see Kallanish 10 January newsletter).
Natalia Capra France