Global raw material prices last week jumped again as the recovery that began in June continued.

Both scrap and iron ore prices continue to be well above the levels registered in July 2016 and 2015. Iron ore, now steadily above the $65/t CFR Qingdao, is some $10/t above the levels registered at the end of July 2016 and $15/t above July 2015. While this year’s record level at some $90/t CFR Qingdao is still far from being reached again, only a few weeks ago few sources in the market would have predicted that iron ore levels could recover this quickly - to above $60/t CFR.

Meanwhile the scrap market is continuing to perform very well and last week the Turkish import market reached a new fourteen-months record at $310/t CFR Turkey for HMS 1/2 80:20. The current level is some $75-80/t above the levels of July 2016 and 2015, confirming that 2017 is set to be remembered as a year of particularly strong scrap prices going forward.