Slow recovery seen for ferrous scrap sector

Global – The first half of 2014 appears to be ending on a lower note for ferrous scrap prices.

Latest cfr indications for shipments from Europe to Turkey are US$ 365-370 per tonne for standard quality HMS I/II 80/20 scrap and US$ 370-375 for shredded – a drop of US$ 5 when compared to the ranges given in Recycling International’s late-April ferrous market report. But in terms of US and European scrap shipments to Turkey, recent weeks have witnessed few startling price moves.

The BIR world recycling organisation’s Ferrous Division president Christian Rubach told its latest meeting in Miami on June 4 that the steel industry had stabilised and that ‘the recovery has begun’, albeit ‘on a very slow path’. Tom Bird, president of the European Ferrous Recovery & Recycling Federation (EFR), reported a general view that the third and fourth quarters of this year would deliver ‘a somewhat stronger market’ but warned ‘we have a little time to wait before we see trading levels and utilisation up to acceptable levels’.

Latest figures from the World Steel Association (WSA) confirm a marked slowdown in Turkish steel production in April. Compared to the same month last year, the country’s crude steel output tumbled 9.1% to 2.62 million tonnes such that the cumulative total for the first four months of the year was 2.7% lower than in 2013 at 11.054 million tonnes.

Nevertheless, the 65 countries reporting to the WSA increased their combined crude steel output by 2.5% – or more than 13 million tonnes – in the first four months of this year.

The full version of Recycling International’s latest ferrous market analysis will appear in its June/July 2014 issue.