Monthly Ferrous Futures Report – August 2021

  • Ferrous futures complex was generally weaker across the board in August with Iron Ore once again sold off, losing 25% MoM (Month-on-Month) to 159 and Turkey Scrap -6% MoM to 454, whilst HRC US bucked the trend and maintained its upward trajectory to 1,889 +5 % MoM.
  • August China net steel exports 3.99mil mt -13.64% MoM. China’s balance of trade August $58.34bn surplus, above $51.05bn expectation with both exports and imports hit record values.
  • European scrap suppliers were unable to compete with lower US dock prices and high freight rates. Turkish Lira also strengthened to 12 May level. Approximately 40 deep sea cargoes were booked into Turkey for September shipment.
  • Futures activity and liquidity remained concentrated in the nearby months.
  • Turkey re rolling mill margins remained at high level of $233/mt average for August but diminished from 240-220 during the month.
  • Iron Ore -25% MoM 159. Iron ore was sold off again in August as demand was sluggish and port stocks hit 5 year high. Coking Coal was again the stand out performer +9% MoM to 228.
  • US HRC +6% MoM to 1,889 continued to increase, adding another $49/st on the month on continued tight supply and strong demand.
  • HRC Europe -2% MoM to 1141 with weaker sentiment in both north and south Europe. October availability was limited with most quotes for November.