World Ferrous Scrap Market to be Hit by Further Supply Crisis

SEATTLE (Scrap Monster): The recently held Bureau of International Recycling (BIR) World Recycling Convention said that increased demand from China could further squeeze the already tight global ferrous scrap market.

According to panelists at the Ferrous Division meeting, ferrous scrap buying from China is likely to become more aggressive in future. The country seems to be adding additional electric arc furnace (EAF) capacity. The operators of basic oxygen furnace (BOF) mills and blast furnaces are seen looking to improve scrap consumption. This in turn will boost ferrous scrap imports by China and dive up global ferrous scrap prices, the meeting noted.

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The easing of regulations by Chinese authorities is likely to rejuvenate exports to that country. Firstly, it had insisted for lab-generated chemistry reports for scrap shipments. However, the administration has now made it clear that the shipments can be accompanied by certificates produced by them. The participants noted that the ports of Tianjin and Qingdao are ideal for shipments, especially due to their proximity with BOF mills in northern parts of the country.

The bulk scrap purchase by China would have significant impact on the global market, as the global supply is already under pressure due to augmented purchases from other Asian countries such as Bangladesh, Taiwan and Vietnam.