Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices both climbed £5/mt ($7/mt) to £175/mt delivered dockside, on Tuesday.
Some large UK bulk ferrous scrap processors had to pay higher dockside prices this week to secure sufficient tonnes as they were caught relatively short of material.
While Davis Index’ Turkish HMS 1&2 (80:20) import benchmark increased by $9/mt to $290/mt cfr over the same period, relatively few if any cargoes were booked from UK suppliers. As a result, Davis Index believes those British bulk exporters have paid up to secure volumes in anticipation of achieving even higher prices in the seaborne market in the coming weeks.
Moreover, UK market participants also noted that the 2.3pc appreciation of the pound against the US dollar over the past week exacerbated the squeeze on margins.
The weekly indices for north and south UK OA (Plate & Structural) both increased by £7/mt to settle at £200/mt delivered dockside on Tuesday.
Davis Index’s north and south UK 5A/5C (frag feed) ferrous scrap indices both held at £100/mt delivered dockside over the same period.
(£1 = $1.34)