Ferrous scrap’s value outpaces iron ore

Hammersmith, United Kingdom-based information service provider Kallanish Commodities says the price differential between ferrous scrap and iron ore has hit a record level in August 2017.

The firm says that in mid-August, the cost of imported, blended No. 1 and No. 2 heavy melting steel (HMS) shipped to Turkey “settled at almost $370 per metric ton CFR (cost and freight).” That represented a figure $293 higher than “the current transaction levels for iron ore [62 percent iron] imported into China,” says Kallanish.

That $293 differential checks in at more than $15 above the previous record level registered in May 2016, which was $277, according to Kallanish’s research.

The U.K. research house says that unlike the May 2016 situation, when the market reacted rapidly to the differential with a quick $100 per ton drop for scrap, “This year the fundamentals supporting the raw material prices seem to be stronger (both for scrap and iron ore).” However, Kallanish adds, “such a high differential is set to hit significantly the profitability and competitiveness of electric arc furnace (EAF)-based producers, forcing the scrap market to correct sooner rather than later.”

The analysis also refers to “steel prices globally [that] are continuing to recover, with increases registered across the globe, from Chinese hot-rolled coil to Brazilian flat products.” Kallanish adds, “The market is set to enter the last month of the third quarter in high spirits [and while the fourth quarter] will bring mixed signals, a real decline in prices is not yet expected, and producers could well be able to end the year with selling prices [that are] firm.”

Sponsored Content

SENNEBOGEN 340G telehandler improves the view in Macon County, NC

An elevated cab is one of several features improving operational efficiency at the Macon County Solid Waste Management agency in North Carolina. When it comes to waste management, efficiency, safety and reliability are priorities driving decisions from day one, according to staff members of the Macon County Solid Waste Management Department in western North Carolina. The agency operates a recycling plant in a facility originally designed to bale incoming materials. More recently, the building has undergone significant transformations centered around one machine: a SENNEBOGEN telehandler (telescopic handler).

Sponsored Content

SENNEBOGEN 340G telehandler improves the view in Macon County, NC

An elevated cab is one of several features improving operational efficiency at the Macon County Solid Waste Management agency in North Carolina. When it comes to waste management, efficiency, safety and reliability are priorities driving decisions from day one, according to staff members of the Macon County Solid Waste Management Department in western North Carolina. The agency operates a recycling plant in a facility originally designed to bale incoming materials. More recently, the building has undergone significant transformations centered around one machine: a SENNEBOGEN telehandler (telescopic handler).

Sponsored Content

SENNEBOGEN 340G telehandler improves the view in Macon County, NC

An elevated cab is one of several features improving operational efficiency at the Macon County Solid Waste Management agency in North Carolina. When it comes to waste management, efficiency, safety and reliability are priorities driving decisions from day one, according to staff members of the Macon County Solid Waste Management Department in western North Carolina. The agency operates a recycling plant in a facility originally designed to bale incoming materials. More recently, the building has undergone significant transformations centered around one machine: a SENNEBOGEN telehandler (telescopic handler).

Sponsored Content

SENNEBOGEN 340G telehandler improves the view in Macon County, NC

An elevated cab is one of several features improving operational efficiency at the Macon County Solid Waste Management agency in North Carolina. When it comes to waste management, efficiency, safety and reliability are priorities driving decisions from day one, according to staff members of the Macon County Solid Waste Management Department in western North Carolina. The agency operates a recycling plant in a facility originally designed to bale incoming materials. More recently, the building has undergone significant transformations centered around one machine: a SENNEBOGEN telehandler (telescopic handler).

Sponsored Content

SENNEBOGEN 340G telehandler improves the view in Macon County, NC

An elevated cab is one of several features improving operational efficiency at the Macon County Solid Waste Management agency in North Carolina. When it comes to waste management, efficiency, safety and reliability are priorities driving decisions from day one, according to staff members of the Macon County Solid Waste Management Department in western North Carolina. The agency operates a recycling plant in a facility originally designed to bale incoming materials. More recently, the building has undergone significant transformations centered around one machine: a SENNEBOGEN telehandler (telescopic handler).

Sponsored Content

SENNEBOGEN 340G telehandler improves the view in Macon County, NC

An elevated cab is one of several features improving operational efficiency at the Macon County Solid Waste Management agency in North Carolina. When it comes to waste management, efficiency, safety and reliability are priorities driving decisions from day one, according to staff members of the Macon County Solid Waste Management Department in western North Carolina. The agency operates a recycling plant in a facility originally designed to bale incoming materials. More recently, the building has undergone significant transformations centered around one machine: a SENNEBOGEN telehandler (telescopic handler).