UK ferrous scrap prices have fallen by as much as £15 per tonne in July, the first significant movement in prices for a couple of months.
Low export demand, the holiday season and exchange rates are all factors cited by scrap merchants across most regions as the reason for the drop.
Many merchants saw prices drop near the beginning of the month, with others seeing drops throughout July.
Operators that MRW spoke to reported a fall of anything from £5 to £15, with lighter scrap categories seeing bigger drops than heavier materials. The average drop was £10 across most UK regions.
For some operators the fall is the result of the sustained sluggishness that the market has been suffering for most of year, with most saying that there are no signs that reported improvements in the national economy are filtering to the scrap trade.
Others say the drop is typical of the time of year. One merchant said: “Around £10 came off prices at the start of the month and we’re hearing that it will go down again next month. Europeans are shutting down in August for the holidays and the exchange rate isn’t great.”
- See the Ferrous Market report in the next issue of MRW for more more on this.