But a bounce in European export prices to destinations such as Turkey and the Indian subcontinent have reduced the expected losses, they added.
Major steelmakers such as Celsa and Liberty have generally cut £10 ($13) per tonne from the prices of their respective steel scrap grades for shipments to be delivered under new monthly settlements, sources said on Thursday.
Some early deals were settled at prices down by around £15 per tonne from August settlements but, with the recent upturn in export prices from Europe, the majority of British consumer monthly delivery contracts were settled at lower values.
One major consumer settled at prices that were £5 per tonne off for some grades and £10 down on others. Another consumer settled at £10 down across all grades with most of its suppliers, after agreeing a drop of £12 with some suppliers at the start of the month, sources said.