FERROUS
87recyclinginternational.com | May/June | 2023
over into 2023 and can satisfy consumption, according to
IREPAS. ‘This has resulted in an aversion to imported steel
due to the lack of certainty, leading to a decline in the scope
of international business,’ says the producers’ association in
its latest short-term outlook. It concludes that the second
quarter could experience a market correction unless con-
sumption of steel increases as new supply sources come
online. Global political tensions and higher interest rates con-
tinue to dampen investment. IREPAS also notes the market is
becoming regional ‘with European domestic mills fighting for
every order’.
‘The level of competition in the global market is strong, with
domestic steel businesses in most instances managing to
achieve good margins,’ the outlook goes on. ‘However, fewer
imports and exports mean that the tonnages moving face
stiff competition. Despite some positives in the global mar-
ket, such as energy prices and shipping costs coming down,
the current status of the market is fluctuating and unstable in
general.’
Although steel demand in the US has remained consistent,
IREPAS says the future looks even more dim. ‘The new bank-
ing crisis for medium-size banks is governing the investment
outlook, as more steel customers have been doing their busi-
ness with these banks, which have started to squeeze credit
lines. High interest rates, which are continuing to increase,
are not helping the situation, leaving imports at the same dis-
advantage as before.’
US STAYS POSITIVE
Fastmarkets’ latest trend indicator for scrap steel prices in
the US in April was in positive territory with a reading of 58.8
but down from the 65.2 recorded in March. The model sug-
gested prices could rise by an average of 6.3%.
‘That expectation comes amid reports that steel mills were
unable to fully cover all their requirements in March, with
domestic steel scrap inventory levels depleted in the wake of
robust domestic and overseas demand in recent weeks,’ it
said.
FM found that just over half of respondents to its survey
expected prices to rise in April. More than one third of
respondents said that stronger demand would be the main
driver while just under 20% anticipated unchanged market
conditions, and a similar amount expected demand to weak-
en compared with March.
Prime steel scrap prices were again due to outperform their
obsolete and shredded counterparts in April.
ANTI-DUMPING
The US is continuing anti-dumping orders on wire rod imports
from 10 countries including the UK, Ukraine and Russia. The
US Department of Commerce (DOC) has announced the final
result of sunset reviews of the anti-dumping duty orders on
carbon and certain alloy steel wire rod. It found that revoking
the orders on specific products from the 10 countries would
be likely to lead to continuation or recurrence of dumping.
The countries in which exporters are required to pay the tar-
iffs are Belarus, Italy, South Korea, Russia, South Africa,
A U T H O R Robin Latchem
86-87-88-89_maferrous.indd 87 03-05-2023 17:07
