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Metal Recycling News January 26, 2021 06:45:14 PM

Fading Overseas Demand Halts Ferrous Scrap Price Boom

Paul Ploumis
ScrapMonster Author
The Turkish mills continue to hold back from deep sea scrap purchases.

Fading Overseas Demand Halts Ferrous Scrap Price Boom

SEATTLE (Scrap Monster): The upward price momentum in ferrous scrap has come to a halt. The prices have been rising continuously over the past two months.

The high price levels seem to have resulted in narrowing of previous supply deficit situation. The overseas demand for scrap has dried out, mainly due to higher prices. Moreover, domestic steel output has started to cool off after peaks following the coronavirus shutdown-initiated production surge. As per statistics provided by the American Iron and Steel Institute (AISI), the steel output during the most recent week registered a decline by 1.2% over the prior week.

ALSO READ: Asian Countries Posted Substantial Dip in Scrap Imports

The Covid-19 pandemic continues to impact economic activity. The construction sector activity has started signs of slowdown. The private and public non residential construction activity has declined, says latest press release issued by the Associated General Contractors of America (AGC). The approval of infrastructure projects by state and federal governments may likely boost steel demand in future, it noted.

The cross-border scrap purchases has registered sharp decline. The Turkish mills continue to hold back from deep sea scrap purchases. The buying interest continues to remain dim in Vietnam and Taiwan. The demand from India and Bangladesh too reported notable declines. Pakistan was the only country in the region to record recovery in demand during the month.

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