UK domestic Fe scrap falls £20-30 as overseas demand falls

UK mills have bought ferrous scrap for February delivery at £20-30 per tonne below January levels, as export prices fell away following a quiet import week in Turkey, India, and the EU, market participants said. 

“Export activity has eased off; this has allowed UK steelworks to take advantage,” one scrap processor said. 

One mill bought the majority of the booked scrap this week at £25-30 per tonne below January levels. The steelmaker has not yet completed its bookings for February, choosing to wait for further reductions in line with international prices next week, according to participants. 

A second mill had finished its bookings, buying more scrap than January at levels £20-25 per tonne below last month. 

The downward trend in scrap prices arrives at a point when mills have increased their finished product prices, citing strong scrap prices over the last four months. 

Further weakening could be experienced next week before February business concludes, as offer prices into Turkey slumped $20 on Friday, and are expected to fall further in the coming week.