Spanish scrap prices sink to two-year low

Spanish scrap prices have continued weakening since April. Local sources tell Kallanish the volatility in the international market is putting pressure on domestic offers, while large mills and traders are evaluating implementing further price corrections. If the latest expected drop of €20/tonne ($21.9) is confirmed during the next few days, scrap values will return to levels last seen in April 2021.

“Prices have continued falling during the last two weeks following limited material availability since the beginning of April,” the source comments.

Large mills are evaluating the direction of the Turkish scrap market and foresee a change in prices in the next few days, another market participant suggests. “Although sentiment is calm in the market, lower finished steel product demand and supplies will soon push prices further lower. If the drop is confirmed, levels will hit a two-year low, falling to €370-380/t for the E8 grade,” the source observes.

According to the Kallanish price index, this price has fallen below €400/t just twice during the last two years, in April-May 2021 and September-November 2022.

Another source estimates the general slowdown in European markets will last until mid-May. He adds that a sharp scrap price increase is expected after the upcoming presidential elections in Turkey.

New E8 quality in the Spanish domestic market is offered at €400/t ($439.9) delivered. Both E40 and demolition quality grade E3 are at €385/t, while E1 quality is priced at €350/t on the same basis.

Todor Kirkov Bulgaria