Complete Steel Collection
EU - Decrease in scrap prices!
10. 3. 2009
According to the market sources scrap trades have agreed on decreasing prices for the next month. This is because steel mill customers now using less than half their capacity. Last month fell prices by less than the €50/t and declines of between €10-30/t in March are expected.
According the European scrap trader is situation very bad not only due to current low prices but mainly because of the drop in volumes and weakness in demand. Steel industry seems to be operating at just 50% of capacity. Scrap traders can still make a profit on the difference between the purchase and sale price, the drop in volumes is where scrap traders are being hit, as they still have fixed costs to meet. There was limitation in sales to Turkey while dealers are shipping more scrap to India because prices are better there.
In Germany after decrease in February is the price for shredded (E40) at €150/t delivered, E3 at €160/t and low residual E8 at €170/t, according to market sources.
In France February prices for E40 were near €170/t delivered, E3 €150/t and E8 €165/t and March is forecast by traders to be about €10/t lower.
in Spain domestic prices have also fallen leaves prices for shredded and OA at around €145/t delivered and the steel production is at just 40-45% of capacity.
Italian prices are expected to fall by €20-30/t in March, this would leave shredded at €150-160/t delivered and E3 at €140/t delivered.
