Spanish scrap prices have fallen by almost €10/tonne ($38.6/t) at the beginning of this week. Local market participants tell Kallanish the decrease was driven by a decline in the global market and lower finished steel demand in Spain.

“Over the last few days, most steel mills announced a reduction in their purchasing prices. The adjustments occurred somewhat slowly since the downward trend was already confirmed in most EU markets and Turkey ten days ago,” a local source observes.

Following the latest Turkish bookings, large Spanish steelmakers believe their early-March scrap supplies will also be dealt at lower prices.

“Local mills have their stocks at normal levels at the end of the month and enough material as a minimum until March at the current production rates, which are not so high. We are expecting a reaction from the market and increasing steel demand next month,” the source adds.

New arisings grade E8 scrap is now offered in Spain at €370/t delivered. E40 stands at €360/t, while E3 is at around €345-350/t. Type E1 is offered at €325/t delivered.