The price of scrap ferrous has fallen by an average of £30 per tonne over the past month, with merchants fearing global downward pressure on the market will continue the trend.
MRW analysis has revealed prices are now at around £80 a tonne, a level not seen since the financial crisis hit in 2008/09 (see graph).
At their lowest point in Q4 2008 prices fell to around £40 per tonne.
A number of merchants warned MRW the market is “unpredictable” and that strong pound, falling demand from abroad and a continuing global downturn are to blame.
Some said they expected a further drop.
One merchant said: “Manufacturers have cut their quotas. Imports from China have decreased now they’re getting more restrictive. It could get worse before it gets better.”