Scrap merchants are continuing to feel perplexed by the ferrous metal market as prices and scrap arisings stay deflated.
Following a fall in the domestic price of a £15 to £20 per tonne set by steelworks at the beginning of February, some dockside prices have seen further drops since with one merchant revealing a £30 decrease. It seems rising fuel costs are impacting on exporters, which could push prices down a little further.
However, over the past week there has been more movement within the export market, with many traders revealing that Turkey has stepped back into the market and is buying a “reasonable” amount of material. India is also expected to begin buying soon. If so, domestic prices will be strengthened.
One trader told MRW: “At the present time the home steel works are giving little indication on tonnages or prices for the March deliveries. While this will come as no surprise to many in the yards, the recent pressures felt in the ferrous scrap industry with the lack of scrap, high prices and the slow recovery in the manufacturing sector, merchants will be keen to see how strongly the orders from home steel works will actually turn out to be.”