The United Kingdom market for inter-merchant light iron scrap was steady for the second consecutive week to Friday July 2, with relatively low availability and firm demand from steelmakers supporting prices.
UK scrap generation, which has been recovering heavy losses from 2020 when heavy industry was affected by Covid-related restrictions, is set to drop again this summer due to cuts in car manufacturing.
Some UK carmakers are shutting for at least a few weeks in July and August due to the shortage of semiconductor chips. In Germany, Europe's largest car producing nation, passenger car production rates fell to about 250,000 units in May, marking the third consecutive month of decline, according to data from the German Association of the Automotive Industry. While that was a year-on-year increase of 58%, it was well down from pre-Covid levels of 445,000 units in May 2019.
As a result, less high-grade,...