Global – Despite dropping lower in June and early July, ferrous scrap prices have returned to levels similar to those reported by Recycling International in its early-June report – even though the interim period has witnessed the UK’s vote to leave the EU and the failed coup attempt in Turkey, the world’s leading importer of steel scrap.
Although these momentous events have created profound political uncertainty within the EU, Turkey and beyond, scrap purchasing has continued to take place – if at a little more guarded pace at times. Latest cfr price indications for shipments from Europe to Turkey are US$ 220-225 per tonne for the standard quality HMS I/II 80/20 scrap mix and US$ 225-230 for shredded.
Latest figures from the World Steel Association, meanwhile, reveal that only four of the world’s leading steelmaking nations recorded year-on-year production gains in the first half of 2016: India (+2.7% to 46.384 million tonnes); the USA (+0.2% to 40.064 million tonnes); Turkey (+3.2% to 16.491 million tonnes); and Ukraine (+10.3% to 12.413 million tonnes).
Despite an increase in June, China produced 1.1% less steel at 399.56 million tonnes.
*The full version of Recycling International’s latest ferrous market report will appear in its August issue.