The market for deliveries of steel scrap to domestic consumers in the UK has mostly gone down so far in October, paring back the gains made last month, industry sources said in the week to Tuesday October 13.
September's gains were being reversed because the weakness of European exports to traditional deep-sea destinations meant that there was increased scrap supply domestically, which weighed on prices, they added.
The UK market to domestic steel mills and foundries, which is delivered on a monthly basis, has been settled at prices down by an average of ?5 ($6.52) per tonne on all grades, except turnings and borings.
The UK market climbed by ?10 per tonne in September after gaining ?15 per tonne in August when major shredders competed for scarcer material against smaller scrap suppliers.
Still, there was a mixture of reported price deals, with some foundries settling their deliveries of steel scrap at rollover prices from September, while most steel mills agreed contracts at prices down by ?5 per tonne, or slightly higher in one or two deals, sources said.
"There was tighter scrap supply in August and...