Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Davis Index’ monthly UK 1&2 Old steel and 3B ferrous scrap indices increased by £13/mt ($17/mt) to £176/mt delivered mill and £181/mt delivered, respectively, following the conclusion of mill-yard negotiations in July.


British steel producers opened negotiations early last week with local ferrous scrap merchants at £10/mt higher compared with July settlements, though suppliers soon came back with demands of up £15/mt.


A longer-term sustainable recovery in consumer confidence remains to be seen, even though released pent up demand has supported a sharp rebound in domestic construction and manufacturing activity from the lows witnessed during the lockdown period. 


As a result, UK mills have maintained relatively low production schedules, and underlying ferrous scrap consumption, until domestic COVID-19 afflicted apparent steel demand recovers to more healthy levels.


Domestic mill-yard settlements have become more entwined with the weekly UK ferrous scrap dockside market, given that delivered-to-mill prices have settled £10-15/mt above dockside rates over the past few months, largely representing freight costs. 


Davis Index’s monthly UK OA, 4A/4C, 8A/8B, and 12A/C/D ferrous scrap consumer indices increased by £8/mt to £198/mt delivered, and by £10/mt to £208-213/mt delivered, £200–205/mt delivered, and £204-209/mt delivered, respectively, over the same period.


(£1 = $1.31)

Leave a Reply

Your email address will not be published.