Ferrous scrap market reaches tipping point

Global – Ferrous scrap prices remained on higher ground in the early weeks of 2017 but, more recently, news has been emerging of sales at substantially lower price points. Recycling International’s latest cfr price indications for shipments from Europe to Turkey are US$ 235-240 per tonne for standard quality HMS I/II 80/20 scrap and US$ 240-245 for shredded, as against the US$ 260-265 and US$ 265-270 respectively in our late-November market analysis.

Around the middle of December, Baltic Sea suppliers to the Turkish market were commanding US$ 290 per tonne for HMS I/II 80/20 scrap and US$ 295 for shredded while at least one US cargo crossed the US$ 300 threshold for shredded material. However, the weakness of the Turkish lira in relation to the US dollar and renewed concerns among Turkey’s mills over sales prospects for rebar in particular have conspired in recent days to apply the heavy downward pressure to scrap prices, with experts anticipating further value erosion in the near term.

*The full version of Recycling International’s latest ferrous market report will appear in its No. 1/2017 issue.