European scrap prices are uncertain for December contracts in a two-tier market. Some suppliers in France and Germany are asking for €10/tonne ($10.4/t) increases. Particularly in France, they report a lower scrap intake for lower grades.

Some German suppliers, however, are offering high tonnages to Italian mills, sometimes twice as much compared to the volumes they sold in November. While the French talk about short supply, the large availability in other countries offering scrap to Italy is convincing Italian buyers to decrease their values by some €10/t for imported material and €15/t for domestic scrap.

Long finished products stocks are said to be high in Eastern Europe, particularly in Poland. Eastern European sources tell Kallanish they are selling lower volumes to Austrian mills, and their scrap availability is also significant. An example of the large scrap volumes offer is that E40 from Eastern Europe has been purchased in Italy at €5/t less compared to the beginning of the month, at €365/t delivered. German scrap companies are also reported to be offering higher volumes to Italy.

Some sources are afraid that January will bring a substantial price fall for the finished product and scrap due to the abnormally high stock of finished products seen across Europe. The increasing European transport prices are also not supporting the business and energy values are expected to hike in coming months. 

In France and Luxembourg, scrap merchants are asking for increases, and domestic Italian prices remain flat in the few contracts implemented this week, although mills intend to decrease values in December. Domestic prices in Eastern Europe are forecast to decline this month, but only slightly against the backdrop of the current Turkish price recovery, which is supporting some European stability.

All Turkish mills have increased their domestic scrap buying prices since last week. Following the latest Baltic-origin scrap deal at $366/t cfr Turkey for HMS 1&2 80:20 and $386/t cfr for bonus grade, a Benelux exporter is heard to have sold HMS 1&2 80:20 at $360/t cfr. A Marmara mill is heard to have bought Baltic-origin HMS 1&2 80:20 at $373/t and P&S at $400/t cfr. Late on Wednesday, a US-origin supplier is confirmed to have sold HMS 1&2 85:15 at $378/t cfr (see Kallanish 1 December).