Prices at UK docks for intermerchant ferrous scrap fell on Friday April 27 as increased freight costs to India weighed on domestic prices at the docks in Liverpool, merchants told Metal Bulletin on Monday April 30.
HMS 1&2 prices dropped to around £220-225 per tonne delivered dockside on Friday April 27, £235-240 delivered for OA, £195 per tonne delivered for 7B turnings and £165-175 per tonne delivered for fragmentise feed (5C), merchants said.
“I think the price in the UK has been overcooked and it needed to come off,” a merchant said.
“Our dock prices have fallen across the board. This is on the container freight issue
, freight rates going up and India still being fairly quiet,” a second merchant with operations in Liverpool said.
“Dock prices are down by £10 [per tonne]. I heard it on Friday afternoon,” a third merchant said.
These dock price falls are likely to result in mills also reducing prices for May deliveries, merchants agreed.
“I think there’s a general feeling that prices [to mills] could fall by £10-15 per tonne,” the third merchant said.
“Within almost hours [of the dock price announcement], the steelworks heard and will use it as a guide,” the second merchant explained.
The first merchant said the normal trend – in which export prices on an ex-yard basis are higher than domestic mill prices – has not been seen for the past month as container freight costs have gone up.
“I should be able to sell to India at a higher price. [A drop in UK domestic prices] will probably bring it back in line,” he said.