Spanish scrap prices are continuing the downtrend started at the beginning of September, Kallanish learns from local market sources. The month started with a price of almost €450/tonne ($439.8/t) for new grade E8 and progressively decreased to end down €55/t on Friday.

“Prices have retreated after the August high by more than expected. Price deceleration is set to continue also in the first week of October as values remain impacted by softening domestic demand and production cuts at certain large mills,” one source comments. "However, the situation could be reversed, driven by movements in the international market, mainly if the latest, higher Turkish purchase prices are confirmed.”

Spanish scrap demand remains weak, with mills buying small tonnages of material to make use of an uptick in billet and rebar export offers, another source says.

“The domestic market situation looks depressed, so mills see a good opportunity in exporting rebar and billet, although shipping small volumes,” says a market participant. “Producers, however, say that, currently, their long steel prices are not very competitive and the gap with other markets will soon widen as a result of rising production costs.”

New E8 quality in the domestic Spanish market is now offered at €395/t delivered. E40 and demolition quality grade (E3) are at €360/t and €335/t delivered, respectively. E1 quality is delivered at €285-290/t.