European scrap markets have shown different trends this week. Scrap traders in Italy and Poland have reported an overall quiet market ahead of the Christmas holidays, while scrap prices in Spain and Germany have increased.
Sources in Italy have reported a slowdown in trading activities and “no significant developments”, as they expect nothing new before the Christmas holidays. Meanwhile, another Italian producer has announced it will halt production from December 19 to January 7. No changes in scrap purchase prices have been reported by steel mills and they are not in a rush to buy.
In Spain, mills’ average purchase prices for turnings since November have been reported at €225-230/mt delivered in the domestic market, HMS scrap prices at €245-255/mt delivered, shredded scrap prices at €275-285/mt delivered, and busheling scrap prices at €285-295/mt delivered, all up by approximately €10/mt compared to the previous month. Sources, however, have reported that purchases by mills are slow.
In Germany, as mentioned, upward movements in scrap purchase prices have been recorded, with one producer increasing its scrap purchase prices by up to €15/mt for some categories. On average, however, steel producers have increased their scrap purchase prices by €5-10/mt. According to sources, these increases are due, on the one hand, to the need for volumes from some producers, and, on the other, to increased purchase prices from scrap export yards, which are resulting in increased competition.
Finally, although scrap purchase prices from mills in Poland have increased by approximately €15/mt in December compared to the previous month, it is difficult to find suppliers, and many of them are already out of the market for the winter holidays. “Everything will be quiet here until January 7,” a source reported.