Davis Index’s monthly UK 1&2, 3B and OA ferrous scrap consumer indices climbed by £3-5/mt ($4-7/mt), to £198/mt delivered mill, £208/mt delivered, and £215/mt delivered, respectively, following the conclusion of mill-yard negotiations in November.
British steel producers opened negotiations early last week with bids at £5/mt higher compared with last month’s levels to match impending hikes in the UK dockside markets.
Some local ferrous scrap merchants almost immediately pushed back in anticipation of being able to drive domestic mills closer to their offer prices.
That said, a large UK ferrous scrap processor noted that some of the country’s major smelters were relatively well-stocked and unlikely to require significant volumes this month. As a result, domestic steel producers held firm and stood by their initial opening bids of £5/mt for November transactions.
Davis’ monthly UK 4A/4C and 8A/8B ferrous scrap consumer indices both increased by £5/mt to £223-233/mt delivered, while 12A/C increased by £3/mt to £223/mt delivered mill over the same period.
(£1 = $1.32)