Davis Index’s monthly UK 1&2, 3B and OA ferrous scrap consumer indices climbed by £20-22/mt ($27-29/mt), to £220/mt delivered mill, £230/mt delivered, and £235/mt delivered, respectively, following the conclusion of mill-yard negotiations in December.
British steel producers opened negotiations with local suppliers with bids of £10-15/mt up in early December compared with November settled prices; largely tracking developments in the UK dockside markets over the past four weeks.
The UK dockside markets have been uplifted by robust price developments in major seaborne trade routes, though bulk processors have managed to suppress the extent of these hikes ($27/mt) compared with those in the export markets ($70/mt).
Low residual ferrous scrap benchmarks witnessed more “muted” hikes relative to obsolete grades given that most domestic steel producers have opted to procure lower grade material over the past month.
In fact, some local suppliers were even willing to offer concessions on low residual grade prices just to reduce the build-up of material – but they have been faced with flat out rejections despite a willingness to offer discounts.
Davis’ monthly UK 4A/4C, 8A/8B, and 12A/C ferrous scrap consumer indices increased by £15-20/mt to £243-248/mt delivered, by £15-20/mt to £243-248/mt delivered, and by £20/mt to £243/mt delivered, respectively, over the same period.
(£1 = $1.33)