BIR: Strained Recycled Steel Supply to Create Intense Competition for Material

SEATTLE (Scrap Monster): The Bureau of International Recycling (BIR) World Mirror on Ferrous Metals- Quarterly Report July 2024 states that limited availability of recycled steel tends to create intense competition for the material.

The market conditions in Scandinavian countries suggest that low supply has made it difficult for industry players to obtain sufficient volume to fill their capacities. The limited supply has also resulted in intensified competition and reduced margins for dealers.

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The steel mill prices for recycled steel in the UK market has continued to remain more or less flat, as any fall in prices is feared to impact supplies even further. Furthermore, yard operators have been reporting intense competition for material. The competition for volume among UK shredder operations is likely to intensify with new capacities coming online in South Wales and Birmingham.

The U.S. market too reported marginal deficit in recycled steel. The record temperature in many parts of the country have shortened collection by nearly 20-30%. The volumes are likely to remain inadequate to meet rising demand once markets heat up following the summer breaks.

The recent data released by the Japanese Ministry of Finance and Trade indicates that recycled steel exports recorded 12% decline over the previous year in May this year. The UAE is predicted to become a net importer of recycled steel, BIR quarterly report noted.