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Tough time for Steel scrap recyclers

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by - 10/9/2012 4671 Views

Drop in scrap metal consumption has led to anxiety

The European steel sector is threatened by various facts. Shutting of steel factories pooled with environmental issues are the few factors.

Embellished as the chief scrap purchaser, Turkey has been utterly wrung out of its conventional market which undoubtedly has affected the steel as well steel scrap market in Europe drastically. Also, huge drop in the consumption of scrap metals has raised concerns about the future of the steel recycling and processing sectors in Europe.

General assembly of the European Ferrous Recovery and Recycling Federation (EFR) took place in Brussels in September’12. EU national associations and federations for firms engaged in the collection, trade, processing and recycling of ferrous scrap metal were the key participants. EFR deems that the reduced consumption of scrap material has led to the fall of prices hampering the production as well.

Exploring the production and consumption that occurred in the first 6months of 2011, now the crude steel production has dropped by 4.5% in the same period this year. Similarly scrap consumption by European mills also abridged leading to a drop of 3.4% compared to 2011. On one hand if the consumption and production status was awful on the other hand EU exported 10.3 million tons of scrap to other countries around the globe whereas the import clogged at 1.8million tons. All these instability is undoubtedly due to lower demand of manufactured steel that automatically brings down the production of scrap too.

From January 2012 – June 2012, Turkey kept hold of its position as the largest buyer making an import of 5.570 million tons. But now, Turkey is no more into its traditional market which may lead to many allusions is what really concerns which will also have its upshot on EU steel and steel scrap market.

Category : Metal

Tags : steel scrap, steel production, US scrap market

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About Sangeetha Pillai

Stepping into this world on 24th August, I am the younger daughter of my parents.  I did my schooling at Sacred Heart Convent High School in Hubli (Karnataka). In a perplexity of deciding my higher studies I finally consoled my mind to go with Civil Engineering. Although my ac .... more info


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