Global – With year-end only a few days away, ferrous scrap prices have regained their 2017 peak levels seen in late August.
Turkish mills are showing a healthy demand for scrap at a time of year when supply can be constrained by difficult weather-related conditions.
As a result, HMS I/II 80/20 scrap of US and Baltic Sea origin is commanding above US$ 360 per tonne on a cfr basis and shredded scrap some US$ 5 more – in line with the top 2017 price paid for a Canadian cargo some four months ago.
European shipments to Turkey are fetching nearer US$ 350 per tonne for the HMS I/II 80/20 mix and US$ 355 for shredded. Iron ore prices, by contrast, are more than 20% shy of their 2017 highs.
In recent days, Metal Bulletin’s 62% Fe iron ore index has risen to around US$ 74 per tonne on the back of good demand and a more buoyant futures market. But this figure is dwarfed by the US$ 95 per tonne achieved by the index in the latter half of February.