Davis Index’s monthly UK 1&2, 3B and OA ferrous scrap consumer indices declined by £45/mt ($62mt), to £235/mt, £245/mt, and £250/mt, respectively, delivered to mill following the conclusion of mill-yard negotiations in February.
British monthly ferrous scrap settlements in February largely tracked developments in the UK dockside market over the past month. UK dockside purchase prices declined by £25/mt over the past four weeks from January’s peak to the current trough, as buyers took their cues from major seaborne trade routes, particularly Turkey.
Local mills could negotiate larger discounts versus pricing action at the dockside, given that many suppliers were caught sitting on large stocks when Turkish prices reversed sharply lower.
Since the conclusion of monthly negotiations this week, Davis Index understands that some domestic mills have reached out to merchants to ask for tonnage increases. This has partly been driven by rebounding steel production rates and foresight to acquire additional material before export prices raise input costs much higher.
Davis Index’s monthly UK 4A/4C, 8A/8B, and 12A/C ferrous scrap consumer indices dropped by £45/mt to within a range of £258-263/mt, respectively, over the same period.
(£1 = $1.38)