The inter-merchant spot market for UK light iron scrap, which hit a ten-week run of stability this week, is set to drop in the near term amid weakening demand for feed from steel producers in Europe, sources told Fastmarkets.
Fastmarkets' price assessment for steel scrap 5C, loose old light, domestic, delivered inter-merchant, UK, was flat week-on-week at ?80-100 ($98-122) per tonne on Friday August 30. The market is unchanged since June 21. However, demand from European steelmakers is weakening as they battle a slowdown in end-user markets such as car-making and construction. Moreover, European steel scrap export markets to key destinations such as Turkey and the Indian subcontinent are also weakening in line with demand and are expected to drag...