Last week the first signs of weakness in iron ore and scrap prices became evident in the market, as benchmark indexes settled at lower levels compared with those seen the week before.

The price of HMS 1⁄2 scrap imported into Turkey lost some $5/tonne last week due to fresh deals heard from the US. After a long period of stability at firm levels, this first fall raised some concerns in the market. Nevertheless opinions remain mixed about the coming weeks, as some see this correction as the beginning of a longer negative trend, while others remain bullish.

Similarly the Kallanish index for 62% Fe iron ore imported into China lost value compared to the previous week. Chinese domestic steel prices began to move downwards after the country’s latest economic data affected overall market sentiment. Longs’ prices in particular were hit by the expectation that the construction sector has reached a peak and will consequently see a slowdown after the upcoming October holidays.