A UK mill settled its May-delivery ferrous scrap contracts
early this month, passing on a £10 ($16) month-on-month
reduction to merchants after dock prices fell last week, market
The mill purchased OA at £260-265 per tonne delivered,
while it paid £195-200 per tonne delivered for 7B
turnings and around £265-270 per tonne delivered for
shredded material, according to merchants.
This is down from Metal Bulletin's overall UK ferrous scrap assessment
both buying mills in April at £262-275 delivered for OA
and £200-210 delivered for 7B turnings.
As inter-merchant dock prices fell by £10 on most grades,
many merchants were happy to accept the reductions
"They came out at £10 off for all grades and we
accepted," a merchant said.
"It was simpler this time around than it has been," a second
merchant said, adding that the second mill had not approached
him yet with a buying price.
"We were finished very quickly this month. Domestic internal
prices dropped by £10 and we reflected that," a mill
source said. "This was on the container issue
and a weakness in export
Merchants were expecting the second buying mill to complete
negotiations by the end of next week.
"[They] might find it hard for a blanket £10 [cut] across
the board as they lowered some prices [for April]," a third