UK steel scrap consumer prices drop for January settlements

Monthly settlements for steel scrap deliveries into UK steelmakers have been settled mostly at prices down by £5 ($7) per tonne month on month for deliveries in January, with weaker export markets reducing the tightness in domestic availability, trade sources told Fastmarkets on Friday January 14.

The move followed an easing of availability this month amid a drop in both export volumes and prices to traditional destinations such as Turkey and the Indian subcontinent.
But availability was expected to be generally tight for the rest of this quarter and into April-June, typically the strongest period in the year for steel production and consumption of steelmaking feed.
Some consumers achieved a reduction of £10 per tonne from their suppliers for deliveries in January, while others reached agreement for a rollover. But most trade sources said that they had agreed, or heard of, mostly smaller reductions in deals negotiated this month.
“Deep-sea trading at the start of the year was lackluster and UK domestic steel mills were keen to settle early,” one major processor told Fastmarkets.

“We probably would have taken a different tack if we had the benefit of seeing the increases that we have seen in...

Published

Declan Conway

January 14, 2022

15:18 GMT

Galway