BIR World Mirror on Ferrous Metals Quarterly Report October 2022 highlights that “The economic and industrial outlook appears unfavourable for the remainder of this year, particularly in Europe where cuts in gas supplies from Russia and drastic energy price increases have been undermining recovery efforts from the COVID pandemic. The availability and cost issues surrounding energy have been forcing many industries to reduce production significantly, including the steel sector on which the scrap industry so heavily relies.”Scrap companies in Europe have been reporting a range of challenges, including the higher energy costs impacting on their own operations, a continuing shortage of skilled workers and diminishing volumes of yard infeed. On the plus side, a weak Euro has enabled many European exporters to increase their shipments to Turkey, upping their combined market share from 51% to 68% in the first eight months of 2022; several cargoes have also been reported to South Asia.On the other side of the Atlantic, fears in early October were of a record sixth consecutive month of US ferrous scrap price decreases - despite availability pressures. However, with the approach of the winter period set to impair intakes of obsolete grades even further, dealers believe the point will shortly be reached where scrap tightness outweighs reduced mill demand.Despite a 5.6% year-on-year decline in shipped volumes in the first half of 2022, the US total of 8.874 million tonnes was ahead of the EU-27 in second place on 8.515 million tonnes (-23.9% year on year).Compared to the same period last year, the first half of 2022 witnessed a 3% decrease in Turkey’s overseas steel scrap purchases to a little under 12.5 million tonnes. In second and third place on the world importer list were, respectively, the Republic of Korea (+29.1% to 2.722 million tonnes) and India (+0.3% to 2.673 million tonnes).The BIR report also confirms that China’s steel scrap consumption was 13.8% lower year on year in the first half of 2022 at 119.55 million tonnes - in percentage terms, more than double the 6.5% decline seen in the nation’s crude steel production over the same period.
BIR World Mirror on Ferrous Metals Quarterly Report October 2022 highlights that “The economic and industrial outlook appears unfavourable for the remainder of this year, particularly in Europe where cuts in gas supplies from Russia and drastic energy price increases have been undermining recovery efforts from the COVID pandemic. The availability and cost issues surrounding energy have been forcing many industries to reduce production significantly, including the steel sector on which the scrap industry so heavily relies.”Scrap companies in Europe have been reporting a range of challenges, including the higher energy costs impacting on their own operations, a continuing shortage of skilled workers and diminishing volumes of yard infeed. On the plus side, a weak Euro has enabled many European exporters to increase their shipments to Turkey, upping their combined market share from 51% to 68% in the first eight months of 2022; several cargoes have also been reported to South Asia.On the other side of the Atlantic, fears in early October were of a record sixth consecutive month of US ferrous scrap price decreases - despite availability pressures. However, with the approach of the winter period set to impair intakes of obsolete grades even further, dealers believe the point will shortly be reached where scrap tightness outweighs reduced mill demand.Despite a 5.6% year-on-year decline in shipped volumes in the first half of 2022, the US total of 8.874 million tonnes was ahead of the EU-27 in second place on 8.515 million tonnes (-23.9% year on year).Compared to the same period last year, the first half of 2022 witnessed a 3% decrease in Turkey’s overseas steel scrap purchases to a little under 12.5 million tonnes. In second and third place on the world importer list were, respectively, the Republic of Korea (+29.1% to 2.722 million tonnes) and India (+0.3% to 2.673 million tonnes).The BIR report also confirms that China’s steel scrap consumption was 13.8% lower year on year in the first half of 2022 at 119.55 million tonnes - in percentage terms, more than double the 6.5% decline seen in the nation’s crude steel production over the same period.
