Davis Index’s monthly UK 1&2, 3B, and OA ferrous scrap consumer indices dropped £5-10/mt ($7-14/mt) to £270/mt, £290/mt, and £295/mt, delivered to mill, respectively, following the conclusion of mill-yard negotiations in April.
UK smelters had initially opened negotiations at down £20/mt across all grades earlier in the month, but a semi-revival in the competing dockside and export market prompted some mills to revise their bids higher to secure sufficient volumes.
Local merchant suppliers stubbornly held out for as long as possible to bring down the discount compared with settlements recorded in the prior month, with the boldest achieving only a £5/mt reduction versus March’s levels.
That said, Davis Index notes that prices for 3B (shredded) and OA (plate & structural) were also relatively well supported by strong domestic and export demand, particularly from Turkey and, more recently, increasing inquiries from China.
Meanwhile, those domestic ferrous scrap suppliers who held out the longest are looking at the swift drop in export prices in the past 48 hours that will likely have a consequential impact on dockside rates next week.
Davis Index’s monthly UK 4A/4C, 8A/8B, and 12A/C ferrous scrap consumer indices decreased by £10/mt to a range of £293-298/mt, delivered to mill, respectively, over the same period.