Recycled steel purchases by a number of key consuming countries in Asia have been undermined by a surge in Chinese semi-finished and finished steel exports as well as in offers of cheap Russian billet, according to the Quarterly Report October 2024 published by the Bureau of International Recycling (BIR).
China retained its position as the world’s largest recycled steel user, posting a total of 122.54 million mt for the first half of 2024, up by 5.4 percent year on year, despite a 1.1 percent decline in the country’s crude steel production. As some traditional bulk and container recycled steel buyer countries in Asia have re-evaluated their procurement strategies and opted for more cost-effective rolling over melting, recycled steel imports in South Korea and Taiwan in the first eight months this year decreased by 45 percent and 11 percent, respectively, both year on year. Bangladesh’s recycled steel pricing and demand have remained relatively stable owing to protection of the domestic market from imports of semi-finished and finished steel. Meanwhile, in August Japan’s recycled steel exports declined by more than 13 percent both year on year and month on month, dropping below 500,000 mt for the first time in four months.
Looking at the EU, in the first half of 2024, recycled steel usage increased by 8.8 percent in the EU-27 to 43.61 million mt, while the EU countries’ overseas recycled steel shipments declined by 18.7 percent year on year to 7.36 million mt. Recycled steel prices in Germany showed a steep decline in September, as some consumers cut their production or introduced short-time working in response to high inventories of semi-finished and finished products.
In the first half, Turkey’s recycled steel consumption was 13.1 percent higher year on year amounting to 15.71 million mt, while its overseas recycled steel purchases increased by 3.6 percent year on year to 9.98 million mt, maintaining its long-held position as the world’s leading recycled steel importer. India remained in second place despite a 26.1 percent decline year on year to 3.88 million mt.
Despite a 16.4 percent decline in its recycled steel shipments in the first half to 7.19 million mt, the US was the world’s second largest exporter following the EU. Recycled steel pricing has been largely sideways in the US over recent months. However, there is said to be potential for higher prices before the year-end. This would be based on tighter supply in the final quarter as holidays serve to impair collection activity.