Global scrap supply will fall in 2009 as the economic downturn hits recycling activity and next year the developed world’s recovery will be key for scrap availability, the UK arm of one of the world’s largest metal recyclers said.

“Over the last year, the scrap arisings in the UK and in the United
States, and in fact in every Western economy has been reduced because
of a global financial and confidence crisis,” Graham Davy, the chief
executive of the UK arm of Sims Metal Management told Reuters in an
interview.

“The average person on the high street is looking for better deals.
They have been very conservative on how they spend their money and that
naturally has an effect on the outflow of scrap.”

The global economic downturn has knocked recycling activity across the
globe as people postpone the replacement of household goods and cars.

Davy did not give a figure for the fall in scrap arisings, or supply.
But he said scrap consumption reached 475 million tonnes last year,
when global crude steel production was at 1.329 billion tonnes. He said
this year steel output was expected to be 1.175 million tonnes.

Sims Metal Management’s UK arm processes over 2 million tonnes of
ferrous and non-ferrous scrap metal annually, including over 400,000
tonnes of cars and other end of life vehicles.

Davy said scrap purchases from China, the world’s top steel producer,
had risen about five fold to around 7.6 million tonnes in the first
half of this year, compared with the same period last year.

“That offsets a lot of the demise in the traditional steelmaking
countries,” he said, but added that for next year, the recovery in the
developed world remained key for scrap.

“The scrap arisings have been driven by western economies. In 2010, we
are waiting to see whether there is a pick up in those traditional
Western economies,” he said.

Davy said the United States, which has the largest share of global
scrap arisings, was key, and grim production figures highlight poor
scrap usage.

“US raw steel production to the third week of November year to date was
down 41 percent compared with the previous period in 2008,” he said.

Global steel prices have rebounded since mid 2009. But traders see it
as a result of cost pressures — rising iron ore and scrap prices –
rather than a pick-up in demand.

Davy declined to comment on the price outlook, but said the major theme
for this year had been volatility due to increased spot buying.

“If there’s a sudden increase in demand the only way to deal with it is
if you’ve got your material around you. And if you don’t have it you’ll
go to the market and buy spot cargoes. I think that’s added to the
volatility,” he said.

Source: Reuters

Search to find what you want

• China is 10 million tonnes of steel scrap shortage, association –

    China has a steel scrap shortage of about 10 million tonnes, according to an analysis by the Chinese Steel Scrap Association. In the first half of the year China produced 267 million tons of crude steel, and for the whole year is estimated to see an overall crude steel output

• China consumes 80 million tonnes of scrap in 2009

    According to Mr Yan Qiping the general secretary of the China Association of Metalscrap Utilization, China approximately consumes 80 million tonnes of steel scrap in 2009. In 2009, China scrap consumption totaled to about 80 million tonnes with the total transaction volume to CNY 200 billion calculated by unit price

• Steel scrap imports zoom in Zhangjiagang port

    Metal Biz quoted according to the statistics of Zhangjiagang Inspection and Quarantine Bureau, the imported scrap steel amounted to 3.35 million tonnes in January to November at Zhangjiagang port valued USD1.1 billion up by 598%YoY and 267%YoY respectively. As per report, the explosive growth of imported scrap at Zhangjiagang attributed

• Vietnam: Steel producers see shortages of raw materials

    Vietnamese-owned ingot steel factories lack a sufficient amount of scrap steel to continue production at high levels, according to the Ministry of Industry and Trade. Pham Chi Cuong, chairman of the Viet Nam Steel Association, said current scrap steel volume only meets about 10 per cent of the domestic production. Steel ingot

• Japanese scrap export 10 months ago by 76pct YoY

    According to statistics released by Japan’s Ministry of Finance, Japan’s scrap export during January to October 2009 period was 8.3 million tonnes, up by 76% YoY. The scrap export during 2009 is estimated to reach 9.97 million tonnes

• U.S. prices for steel scrap uptrend

    Recycling Today reported that given the huge declines in US construction and auto manufacturing over the past year, the recent rise in steel scrap prices may lead many to scratch their heads with surprise. According to the American Iron & Steel Institute, domestic raw steel production hit its weekly high

• EU steel scrap export price at first inclined since early September

    As Turkey steel mills return back market to purchase, EU scrap steel export price firstly increased since early September. The export price of EU No.1 and No.2 mixed heavy scrap (80:20) boosted from U.S.$224-230 per ton to U.S.$235-240 per ton.

• Scrap price index debut

    China will launch its first scrap price index on the Nanning (China-ASEAN) Commodity Exchange in March this year, which steel insiders claim would help both China, the world’s largest scrap consumer, gaining dominance in the price-setting for scrap worldwide and domestic steelmakers fixing their costs and reducing business risks through

• Ukrainian steel industry decline or slowing

    Ukraine’s steel industry reduced finished roll output 18% year-on-year in January-November to 24.417 million tonnes, the Industrial Policy Ministry told Interfax. The industry cut roll output 30% year-on-year in January-August, 27% in January-September and 23% in January-October, so the latest figures indicate that the severe decline in the industry is

• Turkish scrap import to the top

    Learned from market players that Turkey scrap import price continued rising, since last week, only two batches of scrap was booked. One batch of HMS 1&2 80:20 and P&S in Europe sold to a certain steel mill with U.S.$347 per ton (CFR), another batch of HMS 1&2 70:30 was bought

• U.S. steel recycling reached an all time high of 83pct in 2008

    According to information released by Steel Recycling Institute last month, steel recycling reached an all time high of 83.3% in 2008.

• Hyundai Steel to obtain current state of production

    Hyundai Steel produced around 25,000 tonnes of shipbuilding angle steel per month, on average, during the months of July and August 2009. It is expected to maintain the current level of production during the remainder of this year. Demand for shipbuilding angle steel has improved from the third quarter. The company

• Hyundai Steel raises export prices, long product life

    Hyundai Steel plans to lift the export prices of debar and H-shaped steel. The export price of H-shaped steel for a delivery in Feb.-Mar

• China scrap copper output seen peak of 2014

    China’s locally-produced copper scrap is expected to peak as early as 2014, a director at powerful industry body the China Nonferrous Metals Industry Association, said on Sunday. “Another five to six years, the collection of copper scrap domestically would enter into the peak period,” Lu Jian, director of the information

• East Asian steel scrap and pig iron imports continue to rise offer

    The tight supply and increasing spot ore price propelled the import offer of East Asia scrap steel and pig iron to climb continuously. Presently the price of No.1 and No.2 heavy scrap stands at U.S.$360-365 per ton (CFR) and the offer of pig iron increases to U.S.$380-390 per ton (CFR).