The differential between the global benchmark for scrap and iron ore has been climbing back rapidly during the last several days, as Chinese iron ore has lost ground while Turkish scrap has remained relatively stable.

At the end of last week the differential between HMS 1/2 (80:20 blend) CFR Turkey and iron ore 62% Fe CFR China reached $193/tonne, before it fell over $10/t in one month to approach again the $200/t mark.

The differential between the two main raw materials indicators, albeit in a very volatile way, has remained above $200/t since the beginning of 2017, when Turkish scrap levels recovered from the severe drop that took it to register levels below $250/t CFR Turkey. In June this year, nevertheless, when the iron ore started climbing to new record levels and Turkish scrap suffered from the market difficulties registered in the country, the differential fell to as low as $172/t.