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Ferrous scrap prices rebound once again

Global – At the time of Recycling International’€™s previous ferrous scrap report in late January, the key question was how far prices would fall. But that question has been flipped on its head as the market waits to see just how much more momentum can be squeezed out of the latest uptrend which has been attributed in part to stronger demand for finished steel in China and to higher billet values.

Prices touched US$ 220 per tonne for standard quality HMS I/II 80/20 in late January before mounting a robust recovery during the ensuing month and into March.

Latest cfr price indications for shipments from Europe to Turkey are US$ 290-295 per tonne for the 80/20 mix and US$ 295-300 for shredded.

US suppliers have obtained around US$ 303 per tonne for HMS I/II 80/20 and US$ 308 for shredded, with Baltic Sea cargoes also nearing the US$ 300 mark in some instances. Some purchasers in India have been prepared to commit US$ 310-plus per tonne for shredded on a cfr Nhava Sheva basis.

And for mills in Taiwan which had been paying typically US$ 240 per tonne for US-sourced HMS I/II 80/20 in early February, the figure has soared to more than US$ 280.

Global crude steel production in January was 7% or almost 9 million tonnes higher than in the corresponding month of last year at 136.514 million tonnes, according to the World Steel Association.

The full version of Recycling International’s latest ferrous market report will appear in #2.

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