Page 26 from: June / July 2008

26 June/July 2008
Ferrous
B I R M O N T E C A R L O By Ian Martin
‘We believe the highest prices for scrap in 2008 will be achieved during the
second half-year.’ That was the confident
assertion of BIR Ferrous Division Vice-Presi-
dent Anton van Genuchten of Germany-
based TSR GmbH & Co. KG. Addressing the
divisional meeting in Monte-Carlo earlier
this month, he also commented: ‘There is
only one factor that can stop this demand for
steel and therefore scrap, and that is the end
consumer of steel products – nobody else.’
Steel scrap prices had been trading at ‘record
levels’, Mr van Genuchten told delegates. For
example, the HMS I/II (80/20) fob Rotterdam
price had sky-rocketed 110% from US$ 340
per tonne in mid-December last year to US$
655 by mid-May. And while acknowledging
that the market had been ‘taking a breather’ in
the days leading up to the convention, he
pointed out: ‘There continues to be a firm
demand for ferrous scrap and there’s not
much obsolete scrap simply lying around or
being stocked by anybody.’
Mr van Genuchten confirmed that EU-27
steel scrap exports climbed 489 000 tonnes –
or 4.8% – to 10.566 million tonnes last year.
Turkey remained the hungriest consumer of
EU scrap by far in boosting its imports to
5.927 million tonnes (+22.6%). In second and
third places respectively were Egypt on 897 000
tonnes (-33.6%) and India on 633 000 tonnes
(+52.2%). EU steel scrap shipments to Pakistan
surged 94.3% to 412 000 tonnes.
By contrast, EU-27 imports of steel scrap
plummeted 29.5% last year to 5.142 million
tonnes. Russia remained the leading supplier
despite a 47.7% reduction in its shipments to
the EU while deliveries from the USA jumped
38.8% to 713 000 tonnes, according to Mr van
Genuchten’s statistical analysis.
Within the EU last year, steel scrap purchases by
the mills reached 88 million tonnes – a figure
which includes imports. EU-27 mills produced
a total of 210.2 million tonnes of steel, with
electric arc furnaces claiming a 42.7% share.
Far higher domestic demand
Reasons behind the steep decline in Russia’s
exports were outlined by new Ferrous Divi-
sion board member Roman Genkel of the
Mair group. In addition to far higher domestic
demand for scrap on the back of increasing
electric arc furnace capacity, a lack of invest-
Are the best prices
still to come?
In many instances, steel scrap prices have more than doubled since
the latter part of 2007. And the upward momentum could be sus-
tained into the second half of this year, according to expert feed-
back from the BIR Spring Convention in Monte-Carlo. However,
higher prices are also placing significantly more pressure on the
financing of steel and scrap processing operations, it was noted at
the Ferrous Division meeting.
From left: Ferrous Division President Christian Rubach of Germany-
based Interseroh, Anthony P. Bird of the UK Bird Group of Companies
and R. Blake Kelly of Sims Metal Management, USA.
Jens Hempel-Hansen of Denmark-based H.J. Hansen recycling (left)
and Anton van Genuchten of TSR Recycling in Germany.
RI_010 BIR Ferrous.indd 26 19-06-2008 15:22:42