The Spanish scrap market has begun August with a significant increase in prices. The new levels mark a new record for this year, Kallanish learns from market sources.

A large local mill forced a rise of some €20/tonne ($23.6/t) for E8 quality scrap in the domestic market, and it is expected that other steelmakers will follow the increase in the coming days.

“Spanish scrap prices are increasing to a new record for the year. We have good demand and the higher Turkish import prices and improved US scrap market are supporting Spanish scrap prices,” a local merchant comments.

Local Spanish scrap demand is increasing also as a consequence of the restart of production at local mills, after programmed maintenance at some producers in July. Meanwhile some merchants are clearing out stock, a source adds.

Market sources estimates that the Spanish market will be stable for the next two weeks, but new higher prices could be registered in Spain by the end of August.

New E8 grade scrap in the domestic market is now offered at €300/t delivered, while E40 stands at €280/t, also delivered. E3 is currently at €275-280/t delivered and E1 at some €225/t delivered.