Image source: Recycling Today

Ferrous scrap prices are profoundly important for tire recyclers as steel scrap derived from end of life tires (ELT) makes up significant portion of recyclers’s revenues.

Ferrous scrap suffered substantial price gains in the fourth quarter of 2016, however some experts are still confident that the price of this commodity was significantly under-valued compared to coking coal and iron ore. Price indications (CFR) for shipments from Europe to Turkey are currently USD 260-265 per ton (standard quality HMS I/II 80/20 scrap) and USD 265-270 (shredded ferrous scrap). Recent ferrous scrap value recovery allegedly was fuelled mostly by rapid appreciation in coking coal and iron ore; spot prices for premium hard coking coal, for instance, increased beyond USD 300 per ton in early November and are still close to this boundary as month draws to a close. The fallout from these developments was partly due to the greater use of scrap by basic oxygen furnace operators and therefore some eye-catching trade flows occured. For instance, China booked several bulk cargoes of scrap from the US west coast in the first part of November.

Earlier this year, Metal Bulletin’s 62% Fe iron ore index plummeted below USD 40 per ton but in the end of November it fluctuated around USD 80 mark for the second time.

Article source: Recycling Today