SEATTLE (Scrap Monster): The latest Mirror from the Bureau of International Recycling (BIR) foresees sustained strong demand for scrap demand through the rest of the current year, mainly driven by rebounding economies around the world. However, it warns that the market may not always go in one direction and that market participants should maintain a cautious approach.
According to Greg Schnitzer, President, BIR Ferrous Division, the Chinese market has been a major contributor of the current strength in global scrap market. The huge amount of money put into many other markets as part of stimulus measures too has played a major role. He cautioned that the bullish markets may not be expected to continue without any sign of weakness. The ongoing pandemic impacts and Chinese restrictions on imported scrap may result in market uncertainty, he added.
The higher prices paid by European steelmakers may result in most of the European scrap cargoes to be shipped locally. The rise in demand in Japan and South Korea has led to surge in Japanese scrap export prices. BIR Ferrous Mirror pointed out imposition of temporary export duty by Russia on steel and non-ferrous metals as a major development.