EU steel sections prices hold at 12-year high, mills target further hikes


European steel mills are expected to push for further medium sections increases in the near-term, amid strong order books. Platts European medium sections price (category 1, S235 JR) was assessed at Eur735/mt delivered Jan. 20, stable on week.

Mills are moving end-user price up in steps.

Market sources cited shredded scrap prices for Southern European mills at around Eur350-Eur355/mt delivered in January, as remaining mills settled their monthly contracts. Platts’ assessment for southern European shredded scrap was at Eur345-350/mt delivered for January contracts on Jan. 11, up from Eur280/mt delivered in December.

However, Platts assessed the benchmark Turkish import premium heavy melting scrap 1/2 (80:20) index at $440/mt CFR Jan. 20, down $5/mt on day, and down sharply from a near 10-year peak of $482.50/mt CFR on Jan. 4.

One European mill source put tradable levels for medium sections at Eur730-Eur740/mt delivered, citing an overall bullish sentiment in the market.