Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices trended flat at £167/mt and £166/mt delivered dockside, respectively, on Tuesday.
Dockside ferrous scrap prices in the UK remained unchanged over the past week despite incremental price increases in major seaborne trade routes, particularly to Turkey.
Export prices to Turkey have edged up on a cfr basis, though some UK-based bulk ferrous scrap exporters have had to scale back fob prices in response to firmer freight costs.
Mill buyers and scrap exporters have been eagerly following recent trades in the Turkish market to provide strong cues towards the next developments in pricing action.
One European mill buyer was relatively bearish on pricing action going forward given that the US dollar has appreciated 4.6pc against the Turkish lira since Oct 22. This will make the US dollar-denominated imports, including ferrous scrap, more expensive for Turkish-based mills when converting production costs into lira.
The weekly indexes for north and south UK OA (Plate & Structural) were both unchanged over the same period at £186/mt delivered. Davis Index’s north and south UK 5A/5C (frag feed) ferrous scrap indices were unchanged at £95/mt delivered dockside, respectively, over the past week.
(£1 = $1.30)