Low prices continue to damage ferrous sector

Global – Ferrous scrap prices remain at a low ebb, prompting experts to voice concern over the sector’s economic viability. Latest cfr price indications for shipments from Europe to Turkey are US$ 170-175 per tonne for standard quality HMS I/II 80/20 scrap and US$ 175-180 for shredded.

An increase in Chinese billet prices to around US$ 265 per tonne is said to have been partly responsible for a marked improvement in iron ore values, with Metal Bulletin’s 62% Fe iron ore index climbing above US$ 51 per tonne from nearer US$ 40 a month ago. However, there appears to be little sign at present of a knock-on effect on scrap values.

Meanwhile, almost 10 million tonnes was shaved off global crude steel production in January this year as the total of 127.724 million tonnes for the 66 countries reporting to the World Steel Association fell 7.1% short of the 137.518 million tonnes recorded for the opening month of 2015.

*The full version of Recycling International’s latest ferrous market analysis will appear in its March 2016 issue.