The weekly Davis Index for south and north UK HMS 1&2 (80:20) ferrous scrap increased by £9/mt ($12/mt) and £11/mt, respectively, over the past week to £156/mt delivered dockside.
The latest hikes did not come as surprises because some major south UK-based ferrous scrap processors paid slightly above market rates last week to secure volumes from collectors.
In some cases, market participants demanded that large local processors increase their gate prices. Those capable of heeding the demand offered their material directly to northern European customers.
Last week, the disparity between UK and European dockside prices was so great that some southern UK yards were able to export volumes in bulk tippers (trucks) to northern Europe and turn profits. As a result, major ferrous scrap processors across the UK have had to play catch up and raise their purchase prices while still maintaining a relatively healthy margin.
The weekly Davis Index for south and north UK OA (Plate & Structural) ferrous scrap increased by £5/mt and by £10/mt, respectively, over the past week to £175/mt and £180/mt delivered dockside.
The weekly index for 5A/5C (frag feed) rose by £8/mt to £88/mt in the south UK, and by £10/mt to £90/mt in the north UK over the same period of time.