Prices for scrap steel are showing no signs of improving after falling by over 60% in a year.

According to a survey of scrap metal merchants carried out by the Irish Farmers Journal on Monday, prices for heavy scrap steel range from €100/t collected to €140/t delivered. The prices depend on the quality of the steel, however, the prices quoted are for high-quality steel.

The highest prices are available nearest to Limerick, as the vast majority of scrap is exported from the port there. The greater the distance from Limerick, the more expensive it is for scrap companies to deliver scrap to the port.

Highest price

As outlined in Figure 1, the highest price is in the mid west at €140/t delivered, while the lowest quoted prices are in the northeast and southeast at €100/t delivered.

Prices for scrap steel tumbled before Christmas from highs of €180/t in some areas to where they are today – a drop of over 60% in some locations. The primary determining factor in that price fall is an oversupply of steel in the global market. Also, markets such as China, which had been buying large quantities of used steel, have turned to using freshly mined ore.

Scrap prices hit record highs in Ireland last year following floods of the Australian iron mines which resulted in a global shortage and an increase in demand.

While prices are not are not expected to recover to the highs of last year in the medium to long term, the weak euro means that prices could creep up in the short term.

Copper remains in high demand, however, with very little variation between companies. Prices range from €3/kg to €5/kg in all areas of the country. Batteries are readily making €350/t in most areas.

The majority of merchants contacted also confirmed that they require photo identification or a copy of a utility bill if they are to accept scrap metal brought to their yard.

Scrap merchants had been receiving criticism for accepting scrap brought to their yard which could have been stolen or at least had no source identified.