According to SteelRadar data, E3 scrap prices in Italy traded at EUR 370 in the week to 24 June, down EUR 13 from the previous week. As Assofermet emphasised in its market note, weak end-product sales continue to keep expectations on the downside, but low scrap levels stand out as a factor preventing large declines.
While scrap prices declined in Southern Europe, it was observed that scrap prices gained momentum in Northern Europe...
According to Alexander van de Voorde of McKinsey & Company, scrap production is slow in mature supplier economies and this may lead to a tendency for regulators to pull scrap demand to local markets, reducing regional trade flows.
In Benelux, HMS 1/2 (80:20) scrap prices rose by EUR 5 to EUR 318 in the last week of June. In Germany, E40 scrap prices were up by EUR 2 to EUR 370 in the last week of the month. The German market displayed a generally stable performance in June as domestic demand remained stable and exports remained limited.
A similar picture was observed in the Netherlands, where HMS 1/2 (80:20) scrap prices increased by USD 3 to USD 361 during the week of 24 June. This stable trend is expected to continue until the end of the month due to the general commodity market conditions in Europe and the upcoming summer holidays.
The complex dynamics of the steel and scrap markets in Europe, as well as the impact of regional economic factors, are on display.
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