The use of scrap metal has decreased - BIR

The use of scrap steel for the production of crude steel has dropped in most of the major producing countries. A sharp decline of 19.4 percent was noted in Russia.

The Bureau of International Recycling (BIR) released a July 2016 report from the Ferrous World Mirror, according to which excess steel production in China poses the greatest threat to ferrous and non-ferrous scrap prices.

US scrap exports remain weak. On the other hand, imports of cheap European scrap to the American market are gaining momentum amid a growing dollar. According to market participants, this trend is likely to continue in the near future. Meanwhile, the Ukrainian parliament has increased export duties for ferrous scrap from 10 euros per tonne to 30 euros per tonne during the year.

The use of scrap steel for the production of crude steel has recorded a severe downturn in most of the major producing countries. The use of scrap metal in Russia fell sharply by 19.4% and amounted to 2.684 million tons. Other countries that reduced the use of steel scrap were South Korea - to 6.6 million tons, down 8.3%, China (19.5 million tons, down 7.1%), Japan (9.39 million tons , up 6.2%) and the United States (11.7 million tons, up 4.1%).

Scrap buying activity rose slightly in South Korea in June this year. The country received several large shipments of scrap cargo in bulk within a month, after a long break. Scrap flow from Japan to Korea remains weak amid falling prices.

Domestic demand for Japanese scrap fell sharply on the back of production cuts announced at major factories. However, Japanese demand for export scrap remained afloat with a large number of orders from Vietnam. Export prices rose significantly from $ 168.27 per tonne at the beginning of July to $ 182.69-187.50 per tonne by the end of the month.

Turkey's imports of ferrous scrap amounted to 4.152 million tons in the first quarter of this year, an increase of 0.2% compared to the corresponding period last year. India's imports jumped significantly, more than 35% year on year to 1.955 million tonnes. The USA became the top exporter of scrap metal to India during the previous fiscal year, accounting for 17% of India's total ferrous scrap imports.