BIR Ferrous Scrap Report Outline Array of Hope

Rising coking coal prices and rise in scrap consumption by Turkey, good sign for international scrap trade.

In the latest BIR report, William Schmiedel, President of the BIR Ferrous Division, mentioned positive outline for international scrap trade. Decrease in Chinese exports, rising iron ore pricing, coking coal pricing and mergers between Chinese mills are the main reasons highlighted.

The spike in coking coal prices should eventually increase the percentage of scrap used within the integrated sector of the steel industry. He also added, Turkey has indicated that it will switch to a 20% scrap charge from under 10%.

Turkey Remains Largest Steel Scrap Importer followed by India in first 6 months of 2016:

Turkey – the world’s foremost steel scrap importer – increased its overseas purchases by 8.3% year on year to 9.178Mnt. The figures confirm that India reinforced its position as the world’s second-largest steel scrap importer.

Source: BIR Quarterly report

EU-28 remains world’s leading steel scrap exporter:

EU-28 remains world’s leading steel scrap exporter. Data for the first half of 2016 indicate that the EU-28 retained its role as the world’s leading steel scrap exporter with a significant increase in its overseas shipments (+15.2% to 8.593MnT).

US Export decline:

A further decline in US overseas steel scrap shipments of 14.5% to 5.901MnT in the first six months of 2016 was influenced mainly by sharp reductions in exports to Turkey (-24.4% to 1.484MnT), Taiwan (-49.3% to 0.599MnT), the Republic of Korea (-13.6% to 0.408MnT), China (-32.8% to 0.273MnT) and Thailand (+10.4% to 1.767MnT) and to Vietnam (+71.1% to 1.196MnT).

Source: BIR Quarterly report