BIR Foresees Optimistic Future for International Scrap Trade

SEATTLE (Scrap Monster): The extremely unfavourable market conditions are likely to test the resilience of U.S. ferrous scrap market during the month of August this year, said the latest Ferrous Mirror published by the Washington-based Bureau of International Recycling (BIR) - the global recycling industry federation.

According to George Adams, CEO, SA Recycling, the market has witnessed price gains for three consecutive months now. However, the chances of yet another price rise are quite unlikely, owing to significant growth in scrap supply along with other seasonal factors. The market is currently witnessing oversupply of HMS and turnings. The weakening of export prices may affect export trade in August, he added.

The Mirror shared optimistic longer term view on international scrap trade, despite new wave of Covid-19 pandemic seen resulting in continued shutdowns in countries like Malaysia and Vietnam.

In India, large steel producers with possession of captive ore mines and coal reserves were seen delivering record profits. On the other hand, secondary steel producers, who consume large quantities of ferrous scrap, were found still lagging behind. Consequently, there has been a significant decline in ferrous scrap imports over the previous year. Meantime, scrap imports by Pakistan and Bangladesh continued to flourish.

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