Suppliers have managed to generally agree an increase of £15 ($21) per tonne for steel scrap grades delivered into steelmakers in the UK.
The move marks a high in bellwether grades such as OA plate & structural (P&S) and heavy melting scrap (HMS 1&2; 80:20 mix), with both now at price levels last seen in May 2012.
Steelmakers in the UK and Europe are getting higher prices for their products against strong demand in sectors, such as construction and automotive, while domestic economies gear up for a strong recovery from a slump blamed on government measures to limit the spread of the Covid-19 pandemic.
“Scrap availability remains the biggest issue and there are lots of buyers and not enough scrap around to satisfy them,” a UK-based industry source said. “Also, [the religious observance of Ramadan] is now over, meaning more Turkish trading activity for European...