Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Davis Index’s monthly UK 1&2, 3B, and OA ferrous scrap consumer indices increased by £15-20/mt ($21-28/mt) to £305/mt, £325, and £330/mt delivered mill, respectively, following the conclusion of mill-yard negotiations in mid-June.


Domestic mill ferrous scrap purchase prices have largely tracked corresponding developments of more liquid, higher frequency UK dockside benchmarks, which have been driven by robust export demand and stronger competing hot metal production costs.


In fact, UK HMS 1&2 (80:20) dockside rates have increased by a net £19/mt over the past four weeks, as British bulk exporters have had to raise purchase prices to ensure sufficient volumes are secured to fill pre-booked vessels to Turkey.


Meanwhile, signs have emerged that the tightness in new production grades may be subsiding in response to a sharp rebound in manufacturing activity over the past three months, climbing at a record pace to 65.6 in May.


Davis Index’s monthly 4A/4C, 8A/8B, 12A/C, and 12D ferrous scrap consumer indices increased by £20/mt to £365-375/mt, £365-375/mt, £335/mt, and £355/mt, respectively, delivered mill basis.


(£1 = $1.41)

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