World Ferrous Scrap Flows Seen Impacted by Trade Restrictions

SEATTLE (Scrap Monster): The Ferrous Division Roundtable Sessions held during the recently concluded Bureau of International Recycling (BIR) World Recycling Convention in Budapest, Hungary noted that ferrous scrap flows across the globe  continue to be impacted by rising trade restrictions including quotas, tariffs and bans.

During his address, Viktor Kovshevny of the Russian recycling association Ruslom highlighted the negative impacts due to quotas on ferrous scrap exports imposed by the government with effect from September this year. In addition, the government has already announced that all export sales will have to be listed on a metal exchange platform starting April next year, which Kovshevny fears will destroy commercial confidentiality. The suspension of exports due to delay in the quota licensing process has cost hundreds of millions of U.S. dollars to the industry, he added.

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Greg Schnitzer, President, BIR Ferrous Division noted that scrap industry must be freed from trade restrictions.

The guest presentation held during the session pointed to the drastic surge in electric arc furnace (EAF) steel production from levels of 80 million metric tons in 2017 to over 120 million metric tons in 2018. The Chinese EAF steel production is expected to increase further touch new highs of 142.6 million metric tons by 2022. Also, the country’s steel scrap usage for steel production has surged higher by 21% over the previous year in the initial six months of the current year.