Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices declined by £3/mt ($4/mt) and £4/mt to £167/mt and £166/mt delivered dockside, respectively, on Tuesday.
UK ferrous scrap dockside purchase prices averaged lower over the past week after one large bulk processor dropped prices by £5/mt twice in quick succession.
It is unclear whether this British bulk exporter dropped prices sharply to stem flows into their yards or whether it was ahead of the curve in marking purchase prices more accurate to the current market.
The weekly indexes for north and south UK OA (Plate & Structural) both declined by £4/mt over the same period to £186/mt delivered dockside on Oct 20.
The indices for north and south UK 5A/5C (frag feed) ferrous scrap indexes were unchanged at £95/mt delivered dockside over the past week.
According to some UK-based scrap market participants, Liberty Specialty Steel has experienced challenges in meeting payment terms over the past few weeks.
Davis Index has heard anecdotal information that one supplier had experienced a delay of more than 15 days beyond contractual payment terms, potentially incurring credit insurance claims.
A Liberty Steel UK spokesman told Davis Index exclusively that like many other UK businesses, the firm was facing “tough trading and operating conditions in recent months.”
The spokesperson added that the company was “working hard to maintain our strong supplier relationships and to keep our operations running effectively.” Liberty Specialty Steel is seeing some signs of improvement though market conditions remain challenging, and will “continue to focus on meeting our commitments to colleagues, suppliers, and customers,” the spokesperson said.
(£1 = $1.30)