The Davis Index for UK 1&2 ferrous scrap plunged £32/mt over the past month to £158/mt delivered to mill following the conclusion of monthly negotiations in February.
Developments in the frequently priced UK dockside and export market once again set the tone for domestic benchmarks. Weekly UK HMS 1&2 dockside tags fell £50/mt over the past month to £131-136/mt, as reduced export activity hit purchase prices.
Davis Index understands that scrap dealer negotiations with one large UK smelter started as early as Jan 28 at £10 lower than January settlements, but bids were retracted two days later.
Market participants believe British smelters pulled backed to factor in the recent declines in the dockside market.
Some UK steel producers came back into the market with bids of £30/mt lower on or around Feb 7, setting off a challenging negotiation process. Some yards were able to hold the declines at £25/mt down from the prior month, while most settled for the £30/mt reduction.
The weekly Davis Index for OA (plate & structural) and 3B (shredded) dropped £29/mt over the same period to £181/mt and £171/mt delivered to mill, respectively.