Davis Index’ monthly UK 1&2, OA, and 3B ferrous scrap consumer indices increased by £15/mt ($19/mt), £12/mt, and £17/mt to £165/mt delivered mill, £200/mt delivered, and £170/mt delivered, respectively, following the conclusion of June mill-yard negotiations.
Much of the merchant ferrous scrap trade has returned to work following the easing of restrictions over the past month, but the improvement in local supply and corresponding impact on prices failed to transpire given robust demand strength from the export market.
Major seaborne trade routes, particularly to Turkey, have been a saving grace for many ferrous scrap suppliers, given the regular frequency of bookings, which has served to support HMS 1&2 (80:20) benchmarks and even push them to fresh three-month highs of $265.91/mt cfr on June 11.
As a result, UK-based bulk ferrous scrap exporters have correspondingly increased their dockside purchase prices by £15-20/mt to secure sufficient volumes over the same period, which has unsurprisingly prompted domestic smelters to pay higher prices to compete for local material.
Davis’ monthly UK 4A/4C, 8A/8B, and 12A/C/D ferrous scrap consumer indices increased by £15/mt to £203-208/mt delivered, £195-200/mt delivered, and £199-204/mt delivered, respectively, over the same period.
(£1 = $1.25)