Spanish scrap prices have fallen in line with the decrease in raw material demand seen globally in recent weeks, Kallanish learns from market sources. Local market expectations are for new E8 quality prices to continue to decelerate towards October`s level ahead of Christmas.

After a relatively stable three-week period, Spanish prices fell by €20 per tonne ($22.57/t) on Monday.

The Spanish market had waited longer than expected for international prices to weaken and therefore missed two adjustments seen in Turkey in recent weeks, according to a local trader.

"The latest Turkish bookings forced the Spanish large steelmakers to correct their scrap purchasing prices by almost double of Megasa’s adjustment which was implemented in the last days of November," says a market participant. "Most of the steel producers assume that their next scrap purchases will be dealt at a lower price ahead of Christmas”.

According to another source, the availability of material is becoming limited and some larger merchants have practically emptied their stocks. “Scrap shortness is observed in the last weeks, while steel mills are having problems to supply long products although demand is lowering in December,” he observes. The entire steel consumption chain remains impacted by the domestic costlier energy, the source adds.

Auto bundle quality is at €510-500/t delivered in the Spanish market, while new E8 quality is now offered at €480/t. Shredded E40 grade is at €435/t, while demolition and heavy demolition grades, E3 and E1, are delivered at €400/t and €375/t respectively.