United Kingdom

Following our previous Mirror, the UK’s recycled steel market initially strengthened as geopolitical tensions continued to dominate the global economic landscape. UK-origin material, along with that from the rest of Europe, experienced strong demand from Turkey. HMS prices peaked around US$ 410 per tonne, representing a significant increase from the levels reported previously. Competition for material also remained intense at UK dockside operations.

This price strength was driven primarily by sustained Turkish demand, compounded by the disruption of billet and semi-finished steel exports from Iran. With Iranian material unavailable, Turkish buyers turned to alternative supplier regions, thus increasing demand for European recycled steel.

Similarly, the UK container export market remained firm. The closure of the Strait of Hormuz prevented material from the UAE from reaching South East Asian and Indian subcontinent markets, resulting in increased demand for UK exports.

At the time of writing, however, market conditions have changed considerably. News of a proposed peace agreement between the USA and Iran, together with the prospect of some sanctions being eased, has resulted in Iranian billet and semi-finished steel once again moving into Turkey. In addition, containerised material from the UAE has resumed flowing into key Asian markets.

As a result, recycled steel prices have fallen sharply. HMS prices into Turkey have retreated to around US$ 360 per tonne for a reduction of almost US$ 50 from recent highs. Container export prices have also weakened - by approximately £10-15 per tonne - while UK dockside prices have declined by around £15-20.

The short- to medium-term outlook remains cautious, and further downward price corrections cannot be ruled out. As always, however, market sentiment could change rapidly depending on geopolitical developments.

Despite the recent decline in export prices, competition for material within the UK remains firm as we move into the summer months, particularly regarding feedstock destined for shredders. The challenging trading environment has also claimed another major merchant, highlighting the ongoing pressures facing the sector.

Domestic consumption of recycled steel remains subdued. A decision is expected shortly regarding the nationalisation of British Steel, which is currently operating under government control. There has also been speculation that Liberty Steel could face nationalisation, although this remains far from certain.

Finally, there could be a significant delay to the installation of the new electric arc furnace at Tata Steel’s Port Talbot works. Commissioning was originally scheduled for the end of 2027, but it has since emerged that the existing electricity supply is insufficient to support the new furnace. As a result, commissioning could be postponed until well into 2028.