UK monthly mill-yard ferrous scrap settlements are expected to conclude sideways or down £10/mt in October compared with the prior month, according to market participants surveyed by Davis Index.
Domestic monthly settlements could closely track developments in the British ferrous scrap dockside market, which have remained little changed over the past four weeks.
Dockside benchmarks have seen negligible movement, but sentiment in the UK dockside market has noticeably shifted from bullish to viewing the market at £5/mt lower within the next seven days. This has been made increasingly likely by the sharp 2.9pc depreciation in the Turkish lira versus the US dollar since September 22 on US dollar-denominated scrap prices.
One UK-based trader commented that merchants were much more likely to sell material to the docks even at £5/mt less given that bulk exporters pay quicker than local smelters.
(£1=$1.29)