The Spanish scrap market has registered a new adjustment in local prices to bring back levels close to December price levels, Kallanish learned from market sources.

After the prices had jumped as much as €40/tonne ($42.99/t) for new sales of E8 in the beginning of the month, the market has fallen quickly in the last  ten days, taking the overall recovery seen in January down to only €5/t.

The first correction of €15/t was registered last week, as reported. This week a second adjustment of another €20/t was confirmed by merchants.

"Prices dropped after confirmation that the US origin bookings by Turkish mill have been at levels below expectations. That sent scrap prices down by around $25/tonne on-week in Turkey, causing a serious effect on the global market”, a merchant says.

According to another source, the market is focused on Turkish transactions and international prices of scrap and iron ore. New correction in Spain is not expected until first week of February, but the market could see some movement in demand during Chinese New Year.

Spanish prices for E8 are reported this week at €250/t delivered, E40 at €210-230/t delivered, demolition quality E3 at €220-225/t delivered and E1 at €190/t delivered, sources suggest.