The UK market for steel scrap deliveries to domestic steelmakers for monthly contracts increased for the second month in a row in December, against rallying European export markets and tight flows of scrap into British yards, industry sources said in the week to Friday December 11.
The British market has also been affected by surging costs for containers for the export of metal goods internationally, which have jumped by around $1,800 to around $2,800 per container in recent weeks, sources said.
The market to domestic steel mills and foundries, which is delivered on a monthly basis, has been settled at prices up by ?25 ($33) per tonne on all grades, except turnings and borings. The market moved up by ?10 per tonne in November.
The move matched expectations heard last month of a further price increase in December. An additional increase in January was also expected by some British trade sources if current conditions persisted.
"The minimum settlement was ?20 per tonne higher, with some at ?30 per tonne higher where they had been lagging [from November settlements], so a ?25 per tonne increase overall sounds sensible," one major UK supplier told Fastmarkets.