Scrap Rates Hit $600 Per Tonne

Trailing tanker markets could ease tight tonnage supply but new regulations in Pakistan have been introduced following the beaching of a floating storage unit that had not been properly cleaned. Owners are reminded to make sure that tankers are properly prepared and cleaned for hot works before arrival at any sub-continent facilities, GMS noted.

Strong demand

The latest recycling developments come against a backdrop of strong steel demand, strong forward projections and a bull run for iron ore prices. Goldman Sachs’ Nicholas Snowdon, head of Base Metals and Bulks Research, said that the strong market was not likely to change any time soon. Demand is strong and suppliers have resisted the temptation to raise production, he said.

Iron ore prices are unlikely to remain above $200 a tonne but should remain firm around $150 well into next year, analysts agreed. Benchmark iron ore future has hit record levels in China this year with the most active contract on the Dalian Commodity Exchange, for September delivery, climbing to 1,241 yuan ($191.5) last Friday.