Ferrous scrap prices succumb to downward pressure

Global – As Recycling International’s latest issue was heading to press in mid-September, we reported that ferrous scrap prices had taken their first backward step after a period of sustained progress.

Although many experts were not expecting a sizeable downward correction, the end of the month has arrived with cfr price indications for Turkey-bound shipments from Europe and North America hovering just above the US$ 300 trapdoor compared to US$ 340-345 per tonne for HMS I/II 80/20 scrap only two weeks earlier.

Despite pressure from Turkish mills to push prices below the US$ 300 threshold, experts are divided as to whether this would be a step too far in a market still retaining many of its positive facets.

Iron ore prices have also suffered a significant decline in the last few weeks, with Metal Bulletin’s 62% Fe index dropping from a high of almost US$ 80 per tonne in late August to less than US$ 63 at present.