Sharp price movements returned in May, June and July with switchbacks of US$ 20 not uncommon. Cargo rates to Turkey for HMS I/II 80/20 for the period under review ended roughly where they had started, around US$ 295.
Turkish scrap prices have been on a rollercoaster since the end of May, with price hikes of as much as US$ 20 per tonne between deals and then falls of similar amounts often within a few days. The market continues to be influenced by continuing political uncertainty and currency issues. Other scrap markets have been victim to this ever-changing sentiment and prices and demand have followed suit.
The first week of July saw multiple bookings for HMS I/II 80/20 with a European cargo securing US$ 294 per tonne, several Baltic bookings ranging from US$ 293-298.50 per tonne and a US cargo priced at US$ 299 per tonne. Finished steel prices in Turkey could not support scrap prices and a UK cargo was booked for HMS I/II 80/20 at US$ 288 per tonne.
After a pause, sales resumed with a Baltic cargo mid-July securing US$ 295 per tonne and two UK cargoes at US$ 290 per tonne. At the time of writing, the last reported sold cargoes for Baltic and US material were in this range.
World crude steel production was 925.1 million tonnes in the first six months of 2019, up 4.9% compared to the same period in 2018. Asia produced 660.2 million tonnes, an increase of 7.4% on 2018.
The EU produced 84.7 million tonnes of crude steel in the first half of 2019, down 2.5% compared to the same period of 2018. North America’s crude steel production in the first six months was 60.1 million tonnes, an increase of 1.4% compared to 2018.
The full ferrous market update will be published in the new issue of Recycling International.
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