Last week the rapid slump of Turkish scrap prices took the differential between scrap and iron ore to record-low levels. Despite the difficulties in the global steel markets, iron ore is holding between $80/tonne and $90/t. Turkish scrap values meanwhile touched a fouryear low ast week. According to Kallanish, the differential between the two main raw materials indices reached a record low level, last seen only in the fourth quarter of 2015. By mid-last week, Turkish scrap was being sold at a premium of only just above $120/t compared with Chinese iron ore. This differential rapidly recovered to almost $150/t toward the end of the week as iron ore drifted and scrap managed to bounce back to $225/t cfr Turkey, from below $210/t cfr Turkey. In Q4 2015 the differential between the two raw material levels fell below $120/t. At that time however, scrap was being traded at below $170/t cfr Turkey and Chinese iron ore was having difficulties rising beyond $50/t cfr China.