ferrous
57recyclinginternational.com | July/August | 2020
ing from the pandemic faster than the
rest of the world. The demand total in
20121 is expected to be 1 717 Mt. The
authors assume that major steelmaking
economies do not suffer from substan-
tial secondary waves of the pandemic –
but this cannot be a given.
Saeed Al Remeithi, who chairs the
worldsteel economics committee,
thinks the decline in steel demand in
most countries might be less severe
than during the global financial crisis of
2008 because the hardest-hit sectors,
notably the service industries, are less
steel-intensive. ‘If the virus can be con-
tained without second and third peaks,
and if government stimulus measures
are continued, we could see a relatively
quick recovery,’ he says.
Worldsteel noted that China’s econom-
ic recovery started in late February and
by the end of April all major steel-using
sectors were back to near full produc-
a u t h o r Robin Latchem
CaRS aRE CRUCiaL
Ferrous scrap prices in the US have recovered after the initial shock of the coronavirus pan-
demic but a much-needed boost to demand hinges on the car industry, according to mar-
ket observers. More than 150 people participated in the latest virtual event on 14 May
arranged by the Institute of Scrap Recycling Industries (ISRI) with a focus on the ferrous
scrap market. Blake Hurtik, from Argus Metal Pricing, delivered the main presentation with
a look at ferrous scrap prices, exports and the severe impact on automobile manufacturers
who were slowly ramping up production after a global standstill.
Joe Pickard, IRSI’s chief economist, pointed out that China remained by some margin the
word’s greatest steel producer with 53% of global output in Q1. However, Chinese produc-
tion in that quarter had increased by only 1.2% whereas Turkey was up 9.6%.‘It’s clear
Turkey could be the source of potential growth in ferrous scrap demand,’ he commented.
Pickard reinforced the view that the auto sector was key, showing production in Latin
America at a standstill during April while in China, the year-on-year monthly totals for
February and March were each down more a million units, according to the China associa-
tion of Automobile Manufacturers.
tivity, even though the manufacturing
sector was hindered by a collapse in
export demand. ‘The recovery of steel
demand will be more visible in the sec-
ond half of 2020. It will be driven by
construction, especially infrastructure
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56-57-58-59_maferrous.indd 57 06-07-20 13:18
