Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices jumped by £10/mt ($13/mt) to £198/mt, respectively, delivered dockside, on Tuesday.
UK ferrous bulk processors have managed to limit dockside purchase price hikes to $40/mt over the past month compared with an almost $80/mt surge in major seaborne trade routes.
One major UK-based ferrous scrap trader noted that a modest portion of the seaborne price hikes was comprised of a sharp increase in Handymax freight rates to $26/mt from around $18-20/mt over the past 10 days.
Nevertheless, major British scrap exporters’ margins have swelled given that they have still been able to secure sufficient volumes to fill vessels at these levels.
British shortsea bulk coasters and transhippers have also benefitted from a healthy arbitrage between the UK and northern European destinations, particularly Amsterdam, Antwerp, and Ghent.
The weekly indexes for north and south UK OA (Plate & Structural) increased by £10/mt over the same period to £215/mt, respectively, delivered dockside on Dec 8.
Davis’ north and south UK 5A/5C (frag feed) ferrous scrap indexes surged by £15/mt to £125/mt, respectively, delivered dockside over the past week.
(£1 = $1.33)