Live Update – 2
3rd Steel Scrap and Raw Materials Conference: Asia, organised by SteelMint Group in Bangkok, Thailand is continuing with more interesting sessions today. This two-day conference spanning from 11th-12th Sept’17 is being attended by scrap and semi-finished steel buyers, suppliers and steel mills owners from various countries like Vietnam, Pakistan, Bangladesh, Indonesia, Thailand, Malaysia & India which are emerging markets for steel scrap and other raw materials.
In the 1st session organised today, Mr Steven Vercammen – Expert Metals & Mining, McKinsey, Belgium addressed on Growing importance of Chinese Scrap in China.
The key highlights were as follows:
1.Obsolete scrap will drive the growth of available scrap in China as its share is expected to remain around 80% in 2030 against 45% in 2015.
2.Surplus scrap availability in China is likely to occur as scrap supply will exceed the demand even assuming high scrap intensity rates in EAF & BOF.
Mr Paul Butterworth, Research Manager from CRU analysis addressed the conference on the impact of Chinese scrap.
The key insights were as follows:
1.Iron ore demand in China has peaked and increased scrap availability has impacted iron ore demand.
2.Expect a slowdown in construction section in Q4 CY17.
3.Chinese obsolete scrap generation is forecasted to increase by greater than 200 MnT over next 20 years.
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