Global – After a period of strong gains followed by a correction, ferrous scrap prices have entered a more stable phase. Latest cfr price indications for shipments from Europe to leading importer Turkey are US$ 300-305 per tonne for standard quality HMS I/II 80/20 scrap and US$ 305-310 for shredded.
In mid-September, cfr prices paid by Turkish mills for shipments from Europe and the USA were still above US$ 350 per tonne in certain instances. Before the end of that same month, however, increased scrap availability pushed some HMS I/II 80/20 values below US$ 300 per tonne whereas shredded prices held just above that threshold.
The latter half of October and early November have brought renewed but limited price gains, with HMS I/II 80/20 scrap destined for Turkey from the Baltic Sea and the USA valued at around US$ 310 per tonne cfr while the same mix from Europe is at or just above the US$ 300 mark.
Having been within touching distance of US$ 80 per tonne as recently as late August, Metal Bulletin’s 62% Fe iron ore index sank below US$ 60 towards mid-October. Despite a short-lived recovery, the index is once again below this threshold.
World crude production climbed 5.6% year on year in September to 141.43 million tonnes as nearly all the major players recorded higher numbers. The increase for the month matched the 5.6% hike in global output across the first three quarters of 2017 to 1.267 billion tonnes.
Crude steel capacity utilisation was 73.5% in September.
The full version of Recycling International’s latest ferrous market report will appear in its November/December 2017 issue.