The road ahead is not smooth for steel and ferrous scrap industries, says BIR convention

Waste & Recycling  |  2013-06-10 03:42:44   |   By

The various reports and presentations at the 2013 BIR Recycling convention held at Shanghai points to the fact that the steel and ferrous scrap industry may not have a smooth ride in the immediate near term

WASHINGTON (Scrap Monster) : The various reports and presentations at the 2013 BIR Recycling convention held at Shanghai points to the fact that the steel and ferrous scrap industry may not have a smooth ride in the immediate near term.

Industry analysts expressed the view that steel industry would continue its rough ride which initiated long five years back. The journey is not going to be smooth during the rest of the year 2013 and may extend into 2014 as well. The convention says that some positive signals are expected during the year 2015, which may take the scrap industry back to its days of glory.

According to forecast, China is estimated to have a ferrous scrap surplus of at least 145 million ton per year by 2025. Even if China adds to its electric arc furnace capacity and feeds more scrap into its BOF mills , the country’s ferrous scrap surplus can easily cross 75 million tons per year by 2025.

After a fairly positive start in 2013, the markets have tightened towards the end of April and beginning of May. The scrap prices are seen averaging. The prices saw weakness during the months of April and May. The forum sees no relief even during the month of June. A revival of the global steel industry during the second half of the year can infuse an uptick in the scrap markets too.

The 2013 BIR World Recycling Convention & Exposition was held at the Pudong Shangri-La Hotel in Shanghai May 27-29.