One main factor in settling February contracts was the steady drop in the scrap import price into Turkey, a key export market for British steel scrap, sources said.
Turkish buyers shied away from the European export market in January while the dollar weakened versus both sterling and the euro. A weaker dollar makes exports more expensive for traditional buyers of scrap from the UK who work in a market where trades are denominated in dollars.
But the dollar has stabilized its losses versus sterling this month, after weakening steadily in January.
Metal Bulletin’s daily scrap index for Northern Europe-origin HMS 1&2 (80:20) scrap into Turkey fell to around $335 per tonne cfr on February 7 from more than $368 per tonne on January 8...