Markets were rattled by Turkey’s military engagement in Syria but that wasn’t enough to deny higher cargo prices
Turkey continues to lead the global markets, with a change in direction seen in October across the major trading markets resulting in higher prices and a pick-up in trading activity. Prices into Turkey dipped a further US$ 10 per tonne towards the end of September with a lack of optimism on the global markets, with several US cargoes booking HMS I/II 80/20 for US$ 233 per tonne, and then US$ 228 per tonne as the month came to a close.
A UK cargo of HMS I/II 80/20 reached US$ 220, which compares with US$ 228 per tonne reported in the previous issue, while several Baltic cargoes were in the range of US$ 220 – 223 per tonne for the same grade of material, all on a cfr basis.
As October began, several cargoes were booked for US and Baltic origin and all at US$ 226 per tonne. Fortunes changed that month with prices consistently increasing on a weekly basis with cargoes at the start of the month ranging from US$ 223 for UK HMS I/II 80/20, US$ 233 per tonne for US HMS I/II 80/20 and US$ 234 per tonne for Baltic HMS I/II 80/20, again all on a cfr basis.
Military action between Turkey and Syria spooked the markets, as did the resulting political spat between the US and Turkey which brought trading to a standstill mid-month on fears of a 50% tariff being repeated. But this was short lived and cargo purchases resumed with a Baltic cargo trading at US$ 242 per tonne and one from the UK at US$ 245 per tonne.
The market dipped towards the end of October with a brief pause in trading due to a public holiday in Turkey before it resumed once more, closing the month for HMS I/II 80/20 from the UK at US$ 240 per tonne, European HMS I/II 80/20 at US$ 238 per tonne, Baltic cargoes at US$ 241 – 243 per tonne and US HMS I/II 80/20 at US$ 244 per tonne.
Gains continued into November and, at the time of writing, cargoes from US and Baltic sources had secured HMS I/II 80/20 at around US$ 258 per tonne.
India and Taiwan
The India scrap market continued its losing streak at the end of September with HMS I/II 80/20 at US$ 235 – 250 per tonne and this continued into October, with reported cargoes of US$ 230 – 245 per tonne. More material was booked both before and after the Diwali festival with prices moving to US$ 235 – 255 to reflect this pick-up in demand as the month ended. They increased to US$ 240 – 260 per tonne at the beginning of November with all eyes on Turkey.
In Taiwan, prices moved down throughout September following a lack of interest for material, closing the month at US$ 230, and entering October at the US$ 220 level, although they gained ground before the close of the month, reaching US$ 235 following a lack of available material, and rising in early November past US$ 240 per tonne.
China’s iron ore imports rose in September for the third consecutive month to 99.36 million tonnes. That was up from 94.85 million tonnes in August, a 4.8% increase month-on-month and a 20-month high due to solid demand and consistent shipments.
Prices towards the end of September reached US$ 94 per tonne due to potential steelmaking restrictions in China rattling the market temporarily. Prices moved up and remained steady into October at US$ 93 per tonne because of a week-long public holiday in China.
Prices dipped below US$ 90 per tonne in the middle of month, following a change in market mood with growing inventories from the biggest iron ore supplying countries adding to market woes. Prices fell to US$ 87 per tonne and ended the month further down at US$ 85 per tonne as demand dipped. At the beginning of November prices had relaxed further and, at the time of writing, prices had reached US$ 83 per tonne due to uncertainty over the upcoming winter months.
This article is a preview of the latest market report by Recycling International.
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