Davis Index’ weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices rose by £6/mt ($7/mt) and £3/mt to £136/mt delivered dockside and £133/mt delivered, respectively, on Tuesday.
UK dockside ferrous scrap purchase prices increased this week, as some bulk exporters who were rumored to be holding short positions had to pay marginally higher prices to secure volumes and fill pre-existing orders.
However, major UK processors are unlikely to have winced at the latest increase given that dockside prices remain approximately £35/mt below their European peers who have paid €190/mt (£170/mt) for grades equivalent to HMS 1&2 (80:20).
The weekly index for north and south UK OA (Plate & Structural) ferrous scrap increased by £15/mt to £160/mt delivered dockside. At the same time, the weekly index for north and south UK 5A/5C (frag feed) climbed £5/mt to £83/mt.
Looking forward, one European-based steel mill lamented that the “big” short positions held by major UK and European ferrous scrap exporters (to keep inventories low) until end of June delivery could cause the “undesirable” consequence of supporting prices.
(£1 = $1.22 €1.12)