Davis Index’ monthly UK 1&2 and 3B ferrous scrap consumer indices decreased by £2/mt ($2/mt) to £163/mt delivered to mill and £168/mt delivered, respectively, following the conclusion of mill-yard negotiations in July.
Major UK-based smelters had initially opened negotiations with bids of £10-15/mt down over last month’s purchases. However, they were soon compelled to revise those numbers lower to compete with unexpected demand and price strength in the export market.
UK ferrous scrap suppliers witnessed a flurry of activity from Indian and Pakistani traders in the container market last week, with this unanticipated demand driving up prices for feedstock as well as spilling over into the bulks market.
As a result, UK dockside collection prices were pushed up by £7-8/mt and provided local suppliers with more leverage to whittle down the discounts proposed by domestic steel producers in July’s negotiations.
Davis Index’s monthly UK OA, 4A/4C, 8A/8B, and 12A/C/D ferrous scrap consumer indices declined by £10/mt to £190/mt delivered mill, and £5/mt to £198-203/mt delivered, £190-195/mt delivered, and £194-199/mt delivered, respectively, over the same period.