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Ferrous prices head north on solid demand

Global – This time last year, HMS and shredded scrap exports to Turkey were attracting little more than US$ 200 per tonne; fast forward to early August 2017 and prices are around US$ 100 higher – and continuing to gain ground. Latest cfr price indications for shipments from Europe to Turkey are US$ 320-325 per tonne for standard quality HMS I/II 80/20 and US$ 325-330 for shredded.

From a mid-June starting point of approaching US$ 285 per tonne cfr for shredded scrap heading into Turkey from the USA and the Baltic Sea, the early days of July saw prices break through the US$ 300 barrier on the back of healthy Turkish demand for rebar and mills’ relatively low raw material inventories. Since then there has been consolidation followed by further price progress, with shredded scrap from the USA and the Baltic Sea currently valued beyond US$ 330 per tonne on a cfr Turkey basis.

Iron ore prices have also been heading higher, with the Metal Bulletin 62% Fe index climbing from around US$ 55 per tonne in mid-June to approaching US$ 74 in early August before then taking a backward step from this peak.

According to latest statistics from the World Steel Association, crude steel production across its 67 reporting countries climbed 4.5% year on year to 836.026 million tonnes in the first half of 2017.

*The full version of Recycling International’s latest ferrous market report will appear in its No. 5/2017 issue.

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