Global – Recycling International’s latest ferrous scrap market report indicates that prices improved slightly between mid-June and the end of July, by which point shipments from Europe to Turkey were commanding US$ 375-380 per tonne for standard quality HMS I/II 80/20 scrap and US$ 380-385 per tonne for shredded material.
At the same time, rationalisation is continuing to take place within Europe’s scrap sector as larger companies review their operations and close yards in certain regions, according to European Ferrous Recovery & Recycling Federation president Tom Bird.
Ruggero Alocci’s early-July market report from Italy also highlighted the theme of restructuring in noting that Europe’s steel industry now appears to be mounting a response to environmental pressures, overcapacity, competition from other materials and profitability issues. He suggested that raw materials now constitute around 65% of total production costs instead of 30% a decade ago. Despite fluctuations, Metal Bulletin’s 62% Fe iron ore index has remained steadfastly below US$ 100 per tonne over recent weeks.
Meanwhile, latest figures from the World Steel Association confirm that, in the first half of this year, China produced more crude steel than the rest of the world put together: the Asian powerhouse’s output totalled almost 412 million tonnes for an increase of 3% over the corresponding period in 2013 whereas global production was 2.5% higher at a little over 821 million tonnes.
The full version of Recycling International’s latest ferrous market analysis will appear in its August 2014 issue.