Western Europe scrap rises moderately compared to south

French and Luxembourg scrap prices are rising between €5-10/tonne ($5.3-10.7) for some grades, while other qualities are flattening depending on each mill’s needs.

One steel producer in France is strongly reducing output this month and buying lower scrap tonnages. While finished product order books are far from improving, scrap availability remains short, Kallanish hears from market sources.

Suppliers say export volumes to Turkey continue to stagnate. Last week, however, Benelux exporters were forced to increase their dock prices due to weak inflow, although scrap values in Turkey are under strong downward pressure. On Monday, Benelux dock prices were mostly pegged at around €305-310/t, down €10/t on-week (see separate story).

In western Europe this month, E40 is hovering at €375/t delivered, or slightly more depending on transport costs. E8 new arisings is at €365-375/t, also depending on needs and transport costs. E3 stands at €360-365/t and E1C is at €340-350/t delivered, sources suggest.

Scrap prices this month are feeling upward traction from southern Europe, where material is being lifted significantly by short availability and some degree of speculation on the merchants’ side. While scrap price increases in Spain are more moderate, at about €10-15/t depending on grade, the market in Italy “is completely delirious”, a source says. Offers of mixed E40 grade are at as high as €420/t delivered, with other grades somewhat below €400/t delivered.

Natalia Capra France