Global iron ore and scrap prices prepared for a rebound towards the end of last week, following the corrections registered since the beginning of September, but signals from the market are mixed. The extent of this recovery is uncertain and the iron ore market seems to be suffering more than expected. In China the sentiment is likewise mixed, but in Turkey most scrap traders are reporting a new jump in prices.

Last week the Chinese market was on holiday, but a recovery in demand was expected from this week, supporting a possible pick up in iron ore prices. According to Kallanish price series, the iron ore market bottomed on Monday last week at some $62.32/tonne cfr Qingdao, before recovering somewhat to $63.38/t cfr Qingdao. Further recoveries were expected this week supported by demand coming back in the market and the seasonal production restrictions being applied in China but the beginning of the week proved to be disappointing. On Monday 9 October the iron ore price fell again to $62/t cfr Qingdao.