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EU ferrous and steel scrap recyclers concerned about the future

Date: Thu, 4 Oct 2012 | Author: Paul Sanderson

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Representatives of the major European national recycling federations have expressed concern regarding the current and future situation being seen by the European steel sector.

At a meeting of the European Ferrous Recovery and Recycling Federation (EFR), delegates expressed concern at a worrying drop in steel consumption.

Steel demand in the European Union remains 25 per cent below its 2007 level with a current 25 to 30 per cent overcapacity.

Closure of some steelworks, mergers and environmental issues also represent a serious threat to the steel sector when trying to compete globally, according to the EFR.

As a result of this, the EU scrap collections and processing sector has noticed a significant decrease in order volumes. As a consequence, scrap prices have dropped, which in turn has discouraged scrap collection and processing.

But scrap operators have also seen a considerable reduction of scrap availability.

The short-term market outlook is not very positive for EU steel producers and recyclers with increasing rebars flooding the Turkish market, at prices well below Turkish production costs, according to EFR.

EFR president Tom Bird said: “As Turkey, the main scrap purchaser, is being squeezed out of its traditional market, the EU markets for steel and steel scrap will undoubtedly be affected.”

Category: Recycling
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