Steel industry and trends in ferrous metallurgy

Steel producers and scrap processors around the world noted that the iron and steel and ferrous scrap markets are seeing a slow recovery amid uncertainty due to the impact of Covid-19. In general, in June there was a noticeable improvement in market conditions compared to April.

According to them, inadequate supply conditions led to a recovery in scrap prices in the United States during the month of May. Prices remained more or less unchanged in June, with a few exceptions. For example, fast scrap prices rose nearly $ 14 per tonne, rising for the second straight month. The market expects prices to fall in July, mainly due to the weak situation with domestic demand.

Meanwhile, in late May and early June, there was a sharp increase in applications for the export of scrap from the US Pacific coast. Export claims for the US Atlantic coast remained more or less stable. A prolonged lockdown in India has dampened demand on the US east coast.

The market for ferrous scrap is expected to be supply-driven. Scrap prices are likely to remain high as Turkish buyers re-enter the market following Covid-19 restrictions. In addition, the market expects India, which is gradually reopening its market after a tight lockdown since mid-March.