UK STEEL SCRAP MONTHLY: Consumer market builds on gains as firm fundamentals persist

The UK market for deliveries of steel scrap to domestic consumers has risen in September, adding £10 ($13) per tonne to the earlier £15 per tonne rise in August, with major shredders competing for scarcer material with smaller scrap suppliers, industry sources said this week.

Moreover, a steady rate of export business to deep-sea destinations such as Turkey and the Indian sub-continent has also hardened support for higher domestic scrap prices in Europe, they said.
British steel scrap generation has fallen in general terms in recent months, in line with a protracted slowdown in output from the automotive, construction and white goods sectors as a consequence of the Covid-19 pandemic.
“In the main, prices have increased by £10 per tonne. Some of the UK works stuck out for a £7 per tonne increase but had to concede the extra £3 per tonne in order to secure tonnage,” one industry source said.

“There is more scrap being generated from the car plants, compared with almost nothing a few months ago, but that rate is still way down on this time last year,” he added. “Almost all processing scrapyards do not have enough tonnage coming in to...

Published

Declan Conway

September 11, 2020

16:55 GMT

Galway