United Kingdom

The UK market has experienced considerable upheaval over the past few months, with much of the focus on the failure of several long-established businesses. At the centre of this disruption has been the collapse of Unimetals - a company steeped in family history that was sold by Sims just over a year ago. Its failure resulted in approximately 650 employees losing their jobs shortly before Christmas.

In addition, Enablelink - another business with strong family roots - exited private equity ownership under Endless after only a short period and has since been acquired by Global Ardour. Long-standing family business Ripleys has ceased operations until further notice while CF Booth, another well-established name in the sector, entered liquidation early in the new year. Alongside these high-profile cases, several smaller operators have also ceased trading.

The setbacks partly reflect the challenging environment faced by the industry, although market conditions alone do not account for all of the pressures these businesses have experienced.

From a pricing perspective, the ferrous market closed out 2025 trading around US$ 360 per tonne, with December cargoes for HMS concluding between US$ 360 and US$ 362. At the time of writing, the market has strengthened to approximately US$ 375 per tonne, supported by healthy demand in the early weeks of this quarter. Several repeat transactions at this level suggest the market has established a near-term floor.

Dockside prices have remained relatively stable over the past two to three weeks, with HMS trading around £220 to £230 per tonne and OA/bonus grades at £245 to £255. Competition for shredder feed remains intense, with delivered 5C pricing showing wide variation in the £125 to £145 per tonne range.

The short-term outlook suggests prices are likely to remain around current levels, although sentiment is gradually improving as we move towards spring. There is a growing expectation that Turkish mills will return to the market for additional cargoes, potentially providing further support.

Currency movements continue to play a significant role. The US dollar exchange rate has fluctuated between US$ 1.34 and US$ 1.38 to the pound, materially influencing sterling pricing.

A key question facing the market is what will happen to the capacity removed by recent closures, particularly following the demise of Unimetals. The process to sell its assets is already under way, and greater clarity is expected in the coming weeks regarding which companies will acquire and integrate these operations.