Iron Ore Prices Slip Will Scrap Prices Follow?

Iron ore spot prices in China have been falling and may continue to decline to the lows last seen in September 2012 when prices for 62% Fe fines reached into the $80’s (currently trading at $97.5/dmt). Steel Market Update has been reviewing the relationship between iron ore and ferrous scrap prices using shredded scrap as our base product. We have been told in the past that there was a direct relationship between the products (see graphic).