The latest prices and key trends from the SM Commodities Index.
Scrap prices are falling globally, as are iron ore and metallurgical coal, according to S&P Global. Global demand for steel is slowing as rising interest rates bite. Supply is more ample than previous market expectations because Russian scrap, ore, and semi-finished are only partially embargoed.
This combination is undercutting raw material prices that were extremely high by historical standards. From 2006 to 2020 heavy melt scrap prices almost never went above $400/gross ton. Since early 2021 prices have stayed above $400, so the decline is mostly a retreat to more normal levels.
Palm oil prices fell following a wider energy price decline, Chinese demand concerns and a normal seasonal decline. The fall in the wider crude oil price fed over into the vegetable oil markets.
Chinese lockdowns have hurt palm oil demand as palm oil is used more in food service than at home. June and July are usually the seasonal weaker price as harvest season is well under way and adding to available supply.
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