Last week both iron ore and scrap prices decreased indicating that the market globally is weakening slightly as the summer is starting in China and the Ramadan has begun in Turkey and the Middle East.

Iron ore settled last week at levels close to $55/t CFR Qingdao according to Kallanish price index, the lowest level since October last year. Speculators in the futures Chinese steel market are betting for a decline of finished steel prices into June and the first corrections have been seen already in the coils sector.

Meanwhile scrap in Turkey also corrected downward due to lower prices from the US and slower activity during the Ramadan period. The first effects of the lower scrap price in Turkey have been seen already in Europe where June settlements are set to lose some €5-10/t compared with May levels in most countries.