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petitive since the start of the year
owing to higher export taxes. Chi-
na’s overseas shipments jumped
33% last year to a record 65 million
tonnes; exports to the EU soared
46% while those to the Middle East
sky-rocketed 205%. However, Chi-
nese steel exports are expected to
drop back materially this year.
In 2007, total flat steel imports
into the EU increased by 15%.
Mills recoup margins
Knowing that domestic steel
stocks have fallen to a 10-year low,
steel mills in the Western World have
taken their chance to recoup mar-
gins. And producers could also cele-
brate the fact that, in percentage
terms, prices of scrap and substitutes
did not rise as steeply as those of raw
and finished steel. If we take the USA
as an example, carbon steel prices in-
creased US$ 20 per short ton for Jan-
uary deliveries, a further US$ 30 for
February and by no less than US$ 60
for March. And steel giants Arcelor
Mittal and A-K Steel are asking an-
other US$ 80 per short ton for spot
April deliveries. This adds up to an
increase of US$ 190 per short ton in
the space of four months.
For plate, prices of more than
US$ 900 per tonne have been quoted
already for March/April deliveries.
However, the upward trend in scrap
prices appears to have been halted.
In the USA, hot rolled coil prices
stood at a record level of well over
US$ 700 per tonne in February. And
customers are being told to ‘take it
or leave it’ by US mills claiming to
be fully booked following the more
than 27% decline in imports from
China over the last 12 months to a
M A R K E T A N A L Y S I S
Recycling International • March 2008 75
180
190
200
210
220
230
240
250
260
270
280
290
300
310
320
330
MayAprMar JanFeb FebJulyJun OctSep DecNovAug
223.33
252.83
289.11
271
240.83 240.83
253.50
265.50
258.50
287.50
329.17
322.50
Fob West
Coast price
Fob East
Coast price
270
280
290
300
310
320
330
340
350
360
370
380
230
240
250
260
MayAprMar JanFeb FebJun July OctSep DecNovAug
285
300
305
295
285
295
280
275
270
270
300
370
375
265
260 260
285
355
360
275
265 265
285
290
280
275
260
270
280
290
300
310
320
Highest price
Lowest price
330
340
350
360
370
380
390
400
410
MayAprMar JanFeb FebJun July OctSep DecNovAug
285
310
320
305
300
290 290
310
400
405
390
385
285
280
275
290
280
280
295
275
280
295 295
315
295
280
170
180
190
200
210
220
230
240
250
260
270
280
290
300
310
320
MayAprMar JanFeb FebJun July Aug OctSep DecNov
225.50
243.0
251.80
252.80
245.80
249
251.30
235
231.20 230.60
228.70
260.90
264.0
USA Export Prices (US$/GRT)
HMS 1, heavy steel scrap (1/4 Inch)
Fob Rotterdam
Export Prices (US$/t)
HMS 80/20 heavy steel scrap
* Average German Scrap Prices (€/t)
S2 / E2, steel scrap (3 mm)
Delivered at mills
USA Domestic Scrap Prices
(US$/GRT)
HMS 1 heavy steel scrap (1/4 Inch)
com pos ite price deliv ered at mills
Ferrous Scrap Prices (Reference date: 15 February, 2008)
>
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