High ferrous scrap prices sustained by healthy demand

Global: Ferrous scrap prices have been recording further gains in recent weeks, although President Trump’s decision to impose substantial tariffs on steel imported into the USA has created profound uncertainty within the marketplace. Latest cfr price indications for shipments from Europe to Turkey are US$ 365-370 per tonne for standard quality HMS I/II 80/20 scrap and US$ 370-375 for shredded.

After drifting slightly lower in January, ferrous scrap prices re-gathered their momentum in February and early March on the back of generally strong demand. Prices paid by Turkish buyers for American and Baltic Sea cargoes of HMS I/II 80/20 scrap dropped below US$ 345 per tonne cfr in early February after having exceeded US$ 375 three weeks earlier.

Within the first few days of March, however, the same 80/20 scrap mix was once again commanding more than US$ 375 per tonne from Turkish mills enjoying high prices and good demand for their finished products.

Having slid to US$ 320 per tonne cfr in February, shipments of US-origin 80/20 scrap to Taiwan have been fetching north of US$ 360 in early March on reports that some US suppliers have been holding back material in expectation of higher prices to come.

In the US scrap market itself, meanwhile, most mills kept their prices relatively steady in February negotiations but have agreed increases of, typically, between US$ 10 and US$ 30 per tonne for March.

In India, meanwhile, healthy demand has propelled shredded scrap import prices to US$ 400 per tonne and beyond on a cfr Nhava Sheva basis, as compared to less than US$ 370 in February.


The full version of Recycling International’s latest ferrous market report will appear in its No. 2/2018 issue.


Sign up now for our free, weekly newsletter