Issue 04, 2025 - This week's editorial: Turkish scrap gets boost, Trump comes out swinging

Chinese steel prices remained largely unchanged last week as the market there and in much of Asia wound down in preparation for the week-long Lunar New Year holiday. Turkish scrap prices meanwhile strengthened by $7/tonne throughout the week on stronger demand and improved sentiment on hopes of supplying steel to Syria as the war-torn country’s new government reevaluates customs duties. Donald Trump was inaugurated as US President for the second time, immediately firing off a slew of promises and day-one executive orders with potential consequences for the steel supply chain.

Iron ore prices were largely flat throughout the weak but spiked on Friday to $104.51/t cfr China for the KORE 62% Fe index after Rio Tinto said tropical cyclone Sean would affect iron ore shipments.

China's hot rolled coil market remained stable in the week before the Chinese New Year holiday, while export prices inched down $5/t to $480/t fob for SAE 1006 HRC. Chinese domestic rebar values nevertheless rose some $6/t amid rumours of upcoming supply-side reforms targeting Chinese steel mills. If these measures, including strict production cuts, are enforced, they could significantly alleviate oversupply pressure.

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