BIR 2021: Steelmaking margins, prime scrap premiums to remain high in short term Mammoth steel-scrap margins and high-grade premiums prevalent in recent months are likely to persist in the short term but should fall away by the end of the year, panelists at the ferrous session of this weekâs Bureau of International Recycling (BIR) Convention said.
Steel prices have risen more sharply than those for ferrous scrap so far in 2021, leading to huge steelmaking margins for producers in countries such as the United States, Vietnam and Turkey.
âWeâve watched hot-rolled coil prices increase fourfold since last summer [and] at the same time, scrap has virtually doubled in price. There has been a decoupling of [finished] steel prices to scrap that historically we have not seen,â Tom Knippel, the commercial vice president of ferrous sales at Californiaâs SA Recycling, said at the BIR event on Tuesday June 1.
Base metals prices on the London Metal Exchange and Shanghai Futures Exchange were mainly positive on the morning of Tuesday May 25, with only SHFE lead showing significant weakness.
EUROPE BEAMS: Prices continue to surge, mills halt offers European steel H-beam prices continued to surge on Wednesday May 19, with some producers now fully booked, sources told Fastmarkets. Fastmarkets’ weekly price assessment for steel beams, domestic, delivered Northern Europe was €880-900 ($1,074-1,098) per tonne on Wednesday, up from €840-860 per tonne one week earlier.
Well-filled order books at mills and higher feedstock prices on the domestic European and international scrap markets have helped to keep H-beam prices firm, sources said.
In the Italian and German scrap markets, monthly prices have settled upward by €30-40.
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TAIWAN STEEL SCRAP: Strong demand, limited offers boost prices Prices for containerized ferrous scrap in the key Taiwanese market surged this week amid strong demand for cargoes and limited offers from sellers waiting for more price increases.
Negotiated price levels grew increasingly higher throughout the week, with buyers unable to refuse the higher offers by sellers amid the need for imported scrap.
Negotiations increased to $460 per tonne cfr Taiwan on Wednesday May 12 from $450 per tonne on Monday May 10, before buyers bought cargoes at $470 per tonne on Thursday and $475-480 per tonne, both cfr Taiwan, by late Thursday and Friday. It s not easy to secure materials now, especially with sellers still optimistic and holding out for more price increases, a buyer source in Taiwan told Fastmarkets on Friday.
NORTHERN EUROPE WIRE ROD: Limited supply raises price sharply Prices for steel wire rod in the north of Europe have jumped upward over the past week, backed by limited domestic supply, costlier scrap and increased offers from overseas suppliers, Fastmarkets heard on Wednesday May 12. Fastmarkets’ weekly price assessment for steel wire rod (mesh-quality), domestic, delivered Northern Europe, was €720-750 ($875-911) per tonne on Wednesday, up from €670-690 per tonne last week.
This reflected deals, offers and achievable prices reported by market participants over the assessment period.
Several deals were reported at €720-730 per tonne delivered late last week, in Germany and Austria, while this week several sources reported a transaction at €750.