Bureau of International Recycling (BIR) organized World Recycling Convention & Exhibition in Barcelona, Spain spanning 27th-30 May’18. In Ferrous Division, many eminent speakers discussed their sentiments on key markets.
Key findings were as follows:
Economic slowdown in Turkey impacting scrap prices – World’s leading importer of ferrous scrap- Turkey, has been encountering “very difficult” economic conditions, including the devaluation of its currency, and prices have headed lower as a result. According to Ferrous Division board member Frank Heukeshoven of TSR Recycling GmbH & Co. KG in Germany, Turkish sales of rebar have been slower both domestically and in the export market. George Adams of US-based SA Recycling expected scrap prices to soften further for June, at least in part because Turkey has not been in a position to buy its normal volumes.
Japanese scrap prices likely to remain supported – Although demand for construction steel was likely to remain strong both before and beyond the 2020 Olympic Games in Tokyo, Japanese scrap price movements were likely to be “sideways” at best in the near future because of all of the uncertainties affecting the market, said Hisatoshi Kojo of Metz Corporation.
Indian scrap imports to rise with increasing steel demand – As for the Indian Sub-Continent, Mr. Zain Nathani of the Nathani Group of Companies anticipated that ferrous scrap imports into the region would rise “substantially” this year amid “vibrant” steel demand.
China’s increasing scrap usage in steel making – The BIR Ferrous Division’s Statistics Advisor Rolf Willeke highlighted growth last year in both world crude steel output and global steel scrap use, with China consuming more scrap than any other country with its total of 147.9 MnT. Mr. Adams calculated that China had installed or was in the process of installing 130 new shredders since the beginning of 2017, taking the country’s overall tally to more than 200. In the future, he added, China could need as many as 500 shredders.
Increasing use of scrap in steelmaking worldwide – In delivering the ninth edition of “World Steel Recycling in Figures”, the BIR Ferrous Division’s Statistics Advisor Rolf Willeke highlighted growth last year in both world crude steel output and global steel scrap use. World crude steel production increased by 3.9% last year to 1.69 BnT, according to world steel association. It is interesting to note that the global increase in basic oxygen furnace production (+2.3% to 1.228 BnT) was bettered by the upturn in scrap-intensive electric furnace production (+8% to around 445 MnT).
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