Scrap prices in Spain have continued falling in May. The market saw a new €20/tonne ($21.15/t) correction on Friday, with sources forecasting the downward trend will continue until June, although without being clear about the extent of the drop.
“The correction has followed the international market deceleration. Prices have come back to levels seen in March, but should continue to fall in the short term,” one source tells Kallanish.
Another market participant confirms that large steelmakers remain focused on maintaining a good level of raw material in stocks, while also trying to be prudent about their purchases.
“Mills have their inventories back to normal, but falling scrap prices make the market very cautious when buying material,” he notes. “The decrease in levels is considered unpredictable now since prices decrease day by day.” Although there has been a material shortage as a result of the war in Ukraine, Spanish scrap collection activity and domestic volumes offered look to be improving, the source adds.
The recent fall in global scrap prices has resulted in an almost €90/t ($95.19/t) decline for the new arisings grade in Spain since the beginning of May. E8 scrap is now offered in Spain at €540/t delivered. Demolition quality grade E3 stands at €465-470/t, while E40 is priced at €490/t, both delivered. E1 quality is at €445/t on the same basis.
Todor Kirkov Bulgaria
