UK FERROUS SCRAP: Market dragged down with cheaper export prices

UK suppliers of steel scrap to domestic consumers have fallen for the latest monthly settlements for February delivery, paring most of the gains made since November on weaker demand and lower prices for European scrap into Turkey and the Indian subcontinent, sources said on Thursday February 13.

February contracts were down by £25 ($32) per tonne, after climbing £35 per tonne over the three months from November to January. Early deals between some UK suppliers and consumers were settled at £20 per tonne down, while some later deals were reported mostly down £30 per tonne. Other sales were settled up to £35 per tonne lower on the month.
The latest move in monthly delivery contracts tracked a similar trend seen in September and October, when there were losses of £60 per tonne because of a fall in European export prices to Turkey and the Indian subcontinent, as well as weakening domestic demand.
“There has been a marked fall for European steel scrap among steel mills in Turkey, which has had a knock-on effect on import prices into the Indian subcontinent,” one UK-based supplier said.

“It has created more supply in the UK and prices have reacted as...

Published

Declan Conway

February 14, 2020

15:00 GMT

Galway