Scrap price falls by 20 percent in May

European ferrous scrap prices fell by about 20 percent in May, or by approximately $40 per tonne. According to figures just posted on www.steelonthenet.com/commodity_prices.html, the end-May Rotterdam f.o.b. scrap price stood at ~$160/tonne, roughly $40/tonne lower than during the first quarter of 2005. The scrap price now is therefore about $100/tonne less than the price seen at the last peak of the cycle in November 2004.

Compare that to some of the recent price changes for integrated steelmakers, where both iron ore and coking coal prices are showing major increases since end-2004 and are now pretty much at a five year high.

Thinking of the economics of a new integrated versus a new EAF-based steel plant? Rather you than me!

blogger@steelonthenet.com