Ferrous scrap prices turn the corner?

Global – Having dropped from around US$ 360 per tonne to just below US$ 300 in little more than a month, prices for ferrous scrap imported by leading buyer Turkey have shown the first signs of not only stabilising but even mounting a recovery.

Shredded prices into Turkey had exceeded US$ 360 per tonne on a cfr basis at the height of the most recent market upturn but September and early October brought a steady erosion of values.

However, Turkish mills’ purchasing activity late last week and in the early part of the current week indicates a recovery to around US$ 310 per tonne for US-origin HMS I/II 80/20 scrap and US$ 315 for shredded.

Iron ore prices have also declined in recent weeks, with Metal Bulletin’s 62% Fe index sliding from a high of almost US$ 80 per tonne in late August to below US$ 62 in early October.