Posted on 27/09/2017 in category Ferrous

BIR World Mirror on Ferrous Metals / Quarterly report - September 2017

by William Schmiedel, Sims Group Global Trade Corporation

Positive signals for remainder of 2017

During July and August, global steel prices strengthened and continued to support the world’s ferrous scrap prices, especially in Turkey. July represented a record month for Turkish crude steel production at over 3 million tonnes, and by August scrap prices had reached a five-year high of US$ 357 per tonne CFR Turkey. Year-over-year hot metal production did not increase in Turkey; therefore, the higher output came from electric arc furnace production - hence more scrap consumption, resulting in higher prices.

In China, the government-enforced shutdown of induction furnaces and illegal steel mills, as well as pollution control measures, continue to influence the domestic steel market. The production/supply constraints have led to increased steel prices and a subsequent reduction of 29% in the country’s exports in January-August 2017 when compared to the same period last year. Rebar futures, a sensor of Chinese sentiment, have seen variations but have maintained an upward trend.

In Europe, construction is performing well and the automotive industry continues to expand. This is supportive of steel demand growth, which has caused steel output and imports to grow, the latter mostly benefiting Turkey’s share of EU imports (...)

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