Bureau of Middle East Recycling (BMR) conducted its seventh annual conference – 2018 recently in Dubai, UAE. The 2-day event conducted on 10-11 March 2018 attracted regional and international industry leaders and experts to share market insights, current trends, trade issues and facilitated the exchange of cross-border ideas whilst offering an unmatched networking opportunities.
BMR is a common platform for all the suppliers and traders of Middle East recycling industry, which aims at to be a key resource in determining to join together and make metal scrap industry in the Middle East better and to create a clean environment in the Middle East. Below are few things that SteelMint learned related to ferrous scrap market sentiments.
1. Less chances of abnormal price hike in US scrap offers – In the technical session, steel industry veteran Mr. V R Sharma (CEO, Steel and Power Business, Abul Khair Group, Bangladesh) voiced about present ferrous scrap market and shared that –
“USA scrap exports may witness decline after section 232 tariffs imposition by US Govt. However, I do not foresee any abnormal price hike in scrap prices. Buyers may shift to some other options for scrap imports. But, Bangladesh and Pakistan scrap imports are expected to increase significantly in line with upcoming steel capacities in coming times”.
2. Scrap imports to Pakistan to increase amid rising steel capacities – Mr. Fahad Javaid (Non-Executive Director, Mughal Steel, Pakistan) shared about Mughal Steel’s upcoming melting capacity. Over China Pakistan Economic Corridor (CPEC) and various new infrastructural ventures, steel makers are rigorously proposing new steel manufacturing projects in Pakistan.
Earlier, SteelMint reported Mughal Steel proposes to increase melting capacity by 396,000 MT. Presently Mughal Steel is Pakistan’s largest steel producer with steelmaking capacity at 1.1 MnT per annum.
While Amerali Steel, Dost Steel and Naveena Group in Pakistan have also announced about upcoming capacities in the country. Rising steel capacities in Pakistan will further boost ferrous scrap imports to the country. Pakistan imported around 4-5 MnT ferrous scrap in 2016-17 which is expected to increase to 5-6 MnT in 2017-18.
3. UAE scrap exports may come down amid improved domestic consumption – Explaining about the impact of imposition of US import tariffs under section 232 and UAE scrap exports official from RKG International shared that,
“We expect ferrous scrap offers from US suppliers to increase sharply after imposition of 25% steel import tariffs under US section 232. On the other hand, UAE scrap exports may come down over increasing domestic steel capacities which is likely to result in an increase in domestic scrap consumption in UAE.”
4. UAE scrap exporters preferring Bangladesh and Pakistan markets – Mr. Shabbir Mallik, SM International on sidelines of the event shared that UAE based scrap exporters are preferring to supply materials in Bangladesh and Pakistan compared to India as prices are being paid higher there at present.
In 2017, UAE supplied 0.66 MnT ferrous scrap to India, down 6% Y-o-Y as against 0.70 MnT ferrous scrap exports in 2016 to India. While during Jun’17-Jan’18 seven months’ period UAE remained second-largest scrap supplier to Pakistan and supplied around 0.54 MnT ferrous scrap to Pakistan.
5. Indian finished steel demand picking up amid government spending – Mr. Dwarka Prasad Soni, Managing Director Meta Rolls India mentioned that Indian demand is picking up on government spending. Metarolls India is the Maharashtra based company with 15000 MTPA capacity into manufacturing of steel products.
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