European scrap to stabilise amid uncertainty: conference
European scrap prices are anticipated to stabilise and cease their downward trend, maintaining current levels throughout October, according to multiple European scrap suppliers speaking to Kallanish on the sidelines of the Irepas event in Paris.
Suppliers across Italy, Germany, France, and the Benelux regions, along with traders, have indicated a significant decline in scrap collection during August and September, attributed to decreased levels of manufacturing and automotive production.
“Typically, we process approximately 7,000 tonnes of scrap each month at one of our facilities; however, this month we are down to around 4,000 tonnes, representing a significant decline,” remarks a prominent merchant from western Europe.
Nonetheless, a mill located in southern Europe claims that the decline in scrap demand aligns with existing scrap supply, and numerous mills across Europe are indicating significantly lower needs.
“Long product sales are underperforming significantly, and our costs continue to be elevated. We might need to cut production in September, as many mills across Europe are doing. We are closely monitoring the situation in this uncertain market,” the mill source notes.
“The consumption rates for finished long and flat products showed a marked slowdown following the August holiday. Prices are impacted by the low billet values and the reduced prices of finished products in the Asian market. A significant number of steelmakers are purchasing and will continue purchasing low-cost Chinese billets,” the source adds.
European scrap prices are expected to remain stable in October, with potential fluctuations of approximately €5/tonne ($5.5), depending on specific grades and demand requirements.
Overall sentiment at the event was notably pessimistic, with both mills and scrap suppliers in Europe and Turkey uncertain about the medium-term outlook. Multiple sources anticipated that prices of finished products will align with Asian levels; however, others predict a persistent stagnation from now until year-end.
This month, French, Belgian and Luxembourg scrap values declined by some €25-30/t. Buyers in other nations, like Germany and Eastern European countries, are experiencing a comparable decrease of €25-30/t depending on the grade. The decrease in price aligns with the sluggish European market for finished products and the recent drop in Turkish scrap prices. In Italy, prices fell by some €30-40/t.
Truly global, user-friendly coverage of the steel and related markets and industry that delivers the essential information quickly while delivering on most occasions just the right amount of between-the-lines comment and interpretation for a near real time news service of this kind.
Anonymous
Very good overview of the weekly steel market.
Anonymous