The weekly Davis Index for EU ARAG HMS 1&2 (75:25) ferrous scrap inched up by €3/mt ($3/mt) to €223/mt delivered dockside on Tuesday.
North European ferrous scrap processors pushed dockside purchase prices higher to maintain steady volumes across the weighbridge over the past week, despite further compressing their margins.
This week, dock collection prices in UK for HMS 1&2 (80:20) were at around £145 (€174). Davis Index calculates that the equivalent HMS 1&2 (80:20) EU ARAG dockside purchase prices are $245/mt while Turkish import prices for the same grade are in the range of around $280/mt cfr.
When accounting for bulk freight costs, this infers that margins stand at around €15-25/mt compared with the €66-78/mt margin being achieved by some UK bulk exporters. Therefore, it has been unsurprising to hear that some south UK-based ferrous scrap exporters have been able to export volumes at profitable levels to northern Europe.
The Davis Index for HMS 1 ferrous scrap similarly increased by €3/mt to €233/mt delivered dockside on Tuesday, while the index for Bonus (Plate & Structural) remained unchanged at €238/mt over the same period.