Another month, and October has let us down with yet more twists and turns than an Agatha Christie novel.
Turbulence is once again prevalent with global scrap surcharges but this time in a surprise direction. October witnessed a £37/tonne REDUCTION bringing in a figure of £369/tonne, although still considerably higher than this time last year when scrap surcharge was down at £168/tonne.
Global iron ore prices saw some marginal increase (approx. 5%) through October although insignificant compared to its significant reductions over the two months prior, which are still not influencing any significant change in scrap surcharges.
Global alloy surcharge have continued there gradual increases, the most notable being Chrome which increased approx. 33% from September, although this alloy presents the lowest bearing on the combined surcharges.
For example, 709M40 (EN19) witnessed a net reduction of £19/tonne across all alloy and scrap surcharges combined. Generally, across all our engineering alloys, net reductions between £5-£20/tonnes were observed.
And whilst that might all seem like positive news allowing us to have a much needed exhale, the sting in the tail is the increasing chatter regarding the impending implementation of energy surcharges from the global mills.
The mills are yet to confirm full details but rumours are citing potential increase between £50-£150/tonne. Further news will follow from Hillfoot as mills confirm their final positions, which is expected throughout November.
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.