UK STEEL SCRAP MONTHLY: Tight supply extends market rally

Tight steel scrap supply in the UK, due to reduced car production and demolition projects, in addition to strong demand for feedstock from steelmakers, has pushed up domestic scrap prices in June for the second month in a row, sources said on Tuesday June 15.

Scrap supplies in the UK and across Europe have been further tightened by steady export demand into traditional destinations such as Turkey and the Indian subcontinent, sources said.
Suppliers have agreed on an increase of ?15 ($21) per tonne for cut steel scrap grades delivered to steelmakers in the UK, with low residual (clean grade) moving ?20 per tonne higher. The move marks a high in bellwether grades such as OA plate & structural (P&S) and HMS 1&2 (80:20), with both now at price levels last observed in May 2012.
"We expect [upward] pressure on the purchase side as people [steelmakers] try to fill their allocations, which could be difficult given reduced output from the automotive sector," a major scrap processor told Fastmarkets.

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