Loading price data...
Scrap Monster
Olympus-ims.com
XRF Spectro
Metal Recycling News November 02, 2017 03:30:33 PM

Ferrous Scrap to Witness Balanced Market with Limited Volatility

Paul Ploumis
ScrapMonster Author
During the initial half-yearly period of the year, EU continued to remain as the world’s largest exporter of ferrous scrap. The scrap shipments by the EU region soared by nearly 16% year-on-year to total around 10 million metric tons.
Ferrous Scrap to Witness Balanced Market with Limited Volatility

SEATTLE (Scrap Monster): The participants at the recently concluded BIR Ferrous Division meeting in New Delhi predict healthy demand for ferrous scrap during rest of the year. The market is expected to remain balanced. The volatility is likely to remain limited in the near future, they said.

According to William Schmiedel, President, BIR Ferrous Division, the extremely high volatility in ferrous cargo prices during recent times suggest that the market is in a recovery stage. He reminded that the traded prices of per metric ton of ferrous scrap cargo had surged all the way from $240 to as high as $360-$370. Tom Bird of UK-based Liberty Steel, the recent softening of the market cannot be considered as any indicator. The remainder of 2017 should see balanced market, he noted.

The scrap market activity remained subdued in India so far this year. This is at a time when overall global markets reported buoyant trading activity. The country has reported sluggish steel demand during the year. The ferrous scrap imports by the country are likely to decline considerably during the year. The 2017 imports are estimated to decline by around 40% over the previous year. It must be noted that India was the world’s second largest scrap importer in 2016 with total imports amounting to 6.4 million metric tons. Meantime, the drop in imports by India was more than offset by increased imports by Bangladesh. The imports by the country are likely to post significant jump during the year to total around 2 million metric tons.

During the initial half-yearly period of the year, EU continued to remain as the world’s largest exporter of ferrous scrap. The scrap shipments by the EU region soared by nearly 16% year-on-year to total around 10 million metric tons. Turkey was the largest importer of ferrous scrap with purchase from the EU region totaling nearly 6 million metric tons. The Turkish imports of ferrous scrap from the EU region surged higher by almost one-fifth during H1 2017. The other primary importers were Pakistan (700,000 tons), the US (650,000 tons) and Egypt (610,000 tons).

The Chinese scrap exports flourished during July and August this year. Out of the 880 million metric tons of scrap exported by the country during the initial eight-month period of the year, nearly 66% was shipped only during July and August. This suggests strong recovery in overall market conditions, said the participants. The recent closure of induction furnace capacities in the country as part of its stricter environmental policies has resulted in increased exports of scrap by China.

SM Newsletter
Subscribe to SM mailing list and get updates to your inbox