Davis Index’ weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices declined by £3/mt ($4/mt) and £6/mt over the past week to £150/mt and £148/mt, respectively, delivered dockside on Tuesday.
Weaker Turkish and continental European ferrous scrap consumption has undermined major seaborne benchmarks over the past week, prompting UK bulk exporters to drop dockside purchase prices back in tandem with demand.
Most British ferrous scrap traders expected benchmarks to come off this week, though one large UK operator was the first to drop HMS 1&2 (80:20) and 5A/5C (frag feed) collection prices by £5-10/mt on Tuesday, particularly at its southern yards.
The weekly indices for north and south UK OA (Plate & Structural) ferrous scrap plunged by £12/mt and £15/mt to £168/mt and £165/mt, respectively, delivered dockside over the past week.
Market participants commented that spreads between HMS 1&2 (80:20) and OA ferrous scrap grades narrowed recently, as Indian demand for containerized Plate & Structural has fizzled out and some UK yards have stopped “hoarding” material.
Most UK bulk ferrous scrap processors are expected to drop their HMS 1&2 (80:20) dockside purchase prices by £5-10/mt next week to mirror the most recent developments at other yards and protect narrowing margins.
The weekly index for north and south UK 5A/5C (frag feed) decreased by £9/mt to £81/mt over the same period.
(£1 = $1.23)