Page 37 from: January / February 2016
35January/February 2016
Ferrous
threshold for the ensuing five months.
The 66.9% recorded for November was
four percentage points below the level
of 12 months earlier and 1.4 percent-
age points down on October 2015.
Growth in India and Germany
In the penultimate month of 2015, the
66 countries reporting their figures
to the world association produced
126.826 million tonnes of crude steel
for a drop of 4.1% from the 132.227
million tonnes of November 2014.
Across the first 11 months of the year
as a whole, global production fell by
2.8% – or approaching 43 million
tonnes – to 1.471 billion tonnes. Only
two of the world’s leading steelmak-
ing nations produced more steel in
the first 11 months of
2015 than in the corre-
sponding period of 2014:
India’s output was 2.8%
higher at 82.092 million
tonnes while Germany’s
increased by a mere 5000
tonnes to 39.691 million
tonnes.
Leading steelmaker China
recorded a production drop of 1.6% in
November, with the result that output
across the first 11 months of the year
was 2.2% or 16.6 million tonnes lower
than in January-November 2014 at
738.38 million tonnes. US steelmak-
ers produced barely 6 million tonnes of
crude steel last November for a year-
on-year decline of 15.6%, while the
January-November running total was
down 9.7%.
For the same 11-month period, year-
on-year crude steel production declines
were also reported by the EU-28 (-1.5%
to 154.482 million tonnes), Japan
(-5% to 96.564 million tonnes), Russia
(-0.2% to 65.164 million tonnes) and
Turkey (-8% to 28.808 million tonnes).
Output was down by 2.3% in
South America, 2% in Africa
and 1.7% in the Middle East.
Outlook
Despite concerns over the
reduced flows of scrap into
yards, the argument for price
increases has been drowned
out by the well-publicised
woes of the global economy and the
world’s steelmakers. Given this scenario,
it is difficult to envisage from where any
game-changer will emerge in the short
term at least. As a result, most experts
contacted by Recycling International are
sticking with their view that prices could
remain at around their current levels for
some time yet.
Ferrous Scrap Prices Reference date: January 18, 2016
USA Domestic Scrap Prices (US$/GRT)
HMS 1 heavy steel scrap (1/4 Inch) composite price delivered at mills
USA Export Prices (US$/GRT)
HMS 1, heavy steel scrap (1/4 Inch)
CFR Prices for shipments
from EU to Turkey (US$/t)
HMS 80/20 heavy steel scrap
320
235
235 240 240
255 250
350
300
250
200
150
J F M A M J J A S O N D J
J F M A M J J A S O N D J
J F M A M J J A S O N D J
J F M A M J J A S O N D J
350
300
250
200
150
208
223
207
222 224
172184
138172
183
219
211
232
265
250
220220
285
186
170 175180
160 170
260
210 210
230 230
234
209
165 170
190
195
190
220225
265
275
265
255
240
315
195
185185
—– Highest price
—– Lowest price
—– Fob East Coast price
—– Fob West Coast price
190
185
215
220
255
270
260
250
235
310
190
180180
220
185
145
155
152
160
400
350
300
250
200
400
350
300
250
200
Composite Sales Price ex Yard in Germany * (€/t)
E3/European Standard Quality No. 3, heavy old steel scrap ( >6mm )
* Composite sales price considers sales to domestic and international steel works and foundries on weighted average basis
Source: BDSV/SecureCalc
149
146
138
203
225
