Whoo, and what a surprise, another month but only a very modest change in surcharges. How refreshing!
September has represented the smallest month-on-month movement for some time now. We have seen some minor increases on the alloy surcharges but relatively small; and some grades have only seen single digit increases.
The biggest increases have been seen on the higher alloyed nickel bearing grades (835M30 / EN30B, 826M40 / EN26), but these increases have been limited to around £25/tonne.
Scrap surcharge has actually reduced! Yes you read that correctly, it's reduced. But don’t get too excited, it was only by a mere £2/tonnes.
Interesting, iron ore prices have been in decline in the global market for the last two months but this hasn’t been reflected in scrap surcharges despite the two typically being intrinsically linked. It will be interesting to see where the equilibrium between the two will occur, and how this will reflect in scrap surcharges over the next couple of months.
That said, even if this does result in a scrap surcharge reduction, it's unlikely that a drop in global steel prices will follow any time soon, as steel producers are citing significant increases in energy costs, up to 80% in some cases. They giveth, and they taketh away!
If you have any questions, our helpful team are on standby and ready to help. Don’t hesitate to get in touch.
You can also click here to find out how the changes have affected the surcharge for specific steel grades.