Davis Index’s weekly north and south UK HMS 1&2 (80:20) ferrous scrap indices both edged £3/mt ($4/mt) lower to £175/mt delivered dockside, on Tuesday.
Ferrous scrap benchmarks on major seaborne trade routes, particularly to Turkey, have weakened in the past week, but UK merchants have been more resolute with bulk processors.
One UK-based trader commented that some local merchant suppliers had become “irrational” and “greedy” after five consecutive months of relative price strength. Another trader noted that one large UK ferrous scrap processor had already pushed through cuts of £5/mt for HMS 1&2 (80:20) ferrous scrap grades.
The same trader hypothesized that a large fire at a scrap metal yard at Avonmouth Docks, leading to the closure of the port, could provide the impetus to push through discounts elsewhere.
The weekly indexes for both north and south UK OA (Plate & Structural) declined by £10/mt to £195/mt delivered dockside on Oct 6.
Davis Index’s north and south UK 5A/5C (frag feed) ferrous scrap indexes both declined by £5/mt to £95/mt delivered dockside over the past week.
(£1 = $1.30)