Davis Index’ weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices climbed £2/mt ($2/mt) to £138/mt and £135/mt, respectively, delivered dockside on Tuesday.
Recent hikes in UK dockside ferrous scrap purchase prices ran out of steam over the past week, in tandem with developments in major seaborne benchmarks, with the market taking stock after having reached a resistance at around $250/mt for HMS 1&2 (80:20) cfr Turkey.
According to a market participant, price movements will remain muted this week as the market is on the cusp of rolling into a new month next week and due to of the short working week in the UK because of a national holiday on Monday.
The weekly index for north and south UK OA (Plate & Structural) ferrous scrap remained unchanged at £160/mt delivered dockside. The weekly index for north and south UK 5A/5C (frag feed) was also flat at £83/mt over the same period.
One north European-based ferrous scrap supplier predicted $270/mt for HMS 1&2 (80:20) cfr Turkey in the coming weeks, a forecast possibly supported by the short position narrative than many exporters are rumored to be holding.
If the projection were to come to fruition, it would no doubt provide further short-term support to UK dock prices. However, the medium- to long-term narrative of a sustainable recovery in steel consumption remains the greatest concern and uncertainty for market participants.
(£1 = $1.23)